Business

Petrol war: Importers outpace domestic refineries with 62% supply in 2025

Published

8 months ago

January 19, 2026

Petrol importation remained the dominant source of fuel consumed in Nigeria in 2025, accounting for 62.47 per cent of the country’s total Premium Motor Spirit consumption.

This trend persisted despite the commencement of operations, steady ramp-up in production and distribution of petrol by domestic refineries, notably the Dangote Petroleum Refinery, alongside state-owned refineries and several modular facilities, as revealed in the latest midstream and downstream sector factsheet released by the Nigerian Midstream and Downstream Petroleum Regulatory Authority.

According to the newly released NMDPRA factsheet on the state of the midstream and downstream petroleum sector, as analysed by our correspondent on Sunday, total national petrol consumption by Nigerians stood at approximately 18.97 billion litres in 2025, with oil marketing companies accounting for 11.85 billion litres through imports, highlighting the market’s continued dependence on foreign supply.

This means that nearly two-thirds of petrol consumed by Nigerians in 2025 was sourced from imports, while domestic refineries contributed about 7.54 billion litres, representing 37.53 per cent of total consumption, the regulator stated.

These totals were derived by applying the daily average consumption to the number of days in each month. The data, which are based on volumes trucked into the domestic market, underscore Nigeria’s continued dependence on fuel imports, even as the Dangote refinery, currently the country’s only operational large-scale refinery, ramped up supply during the year.

Meanwhile, the volume of petrol imports is expected to decline significantly in 2026 if the Federal Government proceeds with the planned implementation of a 15 per cent import tariff on Premium Motor Spirit, slated to take effect in the first quarter of 2025, in line with a policy memo approved by President Bola Tinubu.

For decades, Nigeria, Africa’s largest crude oil producer, relied almost entirely on imported petrol following the prolonged underperformance of its state-owned refineries in Port Harcourt, Warri, and Kaduna. This dependence deepened after the refineries became largely dormant, forcing the country to meet domestic demand through imports financed with scarce foreign exchange and, for years, supported by a costly petrol subsidy regime.

The structure of the market began to shift in late 2024 with the commencement of operations at the 650,000-barrel-per-day Dangote Petroleum Refinery, widely regarded as a potential turning point for Nigeria’s downstream sector. The refinery, alongside smaller modular refineries and limited output from state-owned facilities, was expected to significantly cut import volumes, improve energy security, and stabilise fuel supply across the country.

However, regulatory data from the regulatory Authority show that while domestic refining and distribution improved steadily in 2025, imports remained dominant. The NMDPRA attributes this to factors including the gradual ramp-up of refining operations, crude supply arrangements, logistics constraints, and demand fluctuations following the full deregulation of petrol pricing.

2025 represents the first full year of large-scale domestic Premium Motor Spirit supply, limiting year-on-year comparisons, particularly as the Dangote Petroleum Refinery only commenced petrol distribution in the final quarter of 2024.

Regulatory data showed that between October and December 2024, total petrol consumption stood at 4.77 billion litres, out of which imports accounted for 3.61 billion litres, while domestic refineries supplied about 1.17 billion litres.

Against this backdrop, the latest midstream and downstream factsheet provides one of the clearest regulatory snapshots yet of Nigeria’s petrol market in a post-subsidy environment, highlighting both the gains made in domestic supply and the structural challenges that continue to sustain the country’s reliance on imported fuel.

A breakdown of the factsheet showed that Dangote refinery accounted for virtually all domestic PMS supply in 2025, supplying an average of between 17 million and 32 million litres per day, depending on the month, and a total of 7.534.9 billion litres for the entire year.

Based on its supply framework with the regulator and the Federal Government, the Dangote Petroleum Refinery was expected to deliver about 600 million litres of petrol monthly, translating to an annual benchmark of 7.2 billion litres.

However, NMDPRA data showed that the refinery supplied 7.54 billion litres in 2025, representing a shortfall of about 336 million litres, or roughly 4.7 per cent below the annual target, despite improved output towards the end of the year.

In December 2025, domestic supply rose sharply to 32 million litres per day, the highest monthly average for the year, while total domestic deliveries reached 992 million litres, signalling gradual stabilisation of operations.

The factsheet showed that total petrol consumption fluctuated significantly throughout the year, rising from 1.60 billion litres in January to 1.97 billion litres in December, reflecting seasonal demand, logistics dynamics, and pricing conditions.

A month-on-month breakdown showed that Nigeria’s petrol consumption showed wide fluctuations throughout 2025, rising from 1.60 billion litres in January to 1.97 billion litres in December, representing an overall increase of about 23.7 per cent over the year.

Total consumption declined sharply by 11.6 per cent, from 1.60 billion litres in January to 1.41 billion litres in February, before rebounding by 11.8 per cent in March to 1.58 billion litres. Demand rose further in April to 1.66 billion litres, a 5.0 per cent increase, and peaked in May at 1.69 billion litres, up 1.8 per cent.

This was followed by a steep 14.6 per cent drop in June to 1.44 billion litres. Consumption recovered modestly in July (1.46 billion litres, up 1.6 per cent) and August (1.50 billion litres, up 2.5 per cent), before falling to its lowest level of the year in September at 1.31 billion litres, a 12.4 per cent decline.

Demand then surged by 33.8 per cent in October to 1.76 billion litres, dipped by 9.7 per cent in November to 1.59 billion litres, and climbed strongly by 24.4 per cent in December to 1.97 billion litres, the highest monthly level recorded in 2025.

Petrol imports by oil marketing companies and the Nigerian National Petroleum Company Limited tracked these consumption movements and remained the dominant source of supply throughout the year.

Imports rose from 765.7 million litres in January to 770 million litres in February, an increase of 0.6 per cent, before jumping by 15.5 per cent in March to 889.7 million litres. Volumes dipped slightly by 3.2 per cent in April to 861 million litres, but surged sharply in May to 1.20 billion litres, representing a 39 per cent increase and accounting for about 71 per cent of total consumption for the month.

Imports declined by 18.3 per cent in June to 978 million litres, rose again by 14.4 per cent in July to 1.12 billion litres, and fell by 26.9 per cent in August to 818.4 million litres. September imports dropped further by 16.3 per cent to 685.1 million litres, before climbing by 30.8 per cent in October to 895.9 million litres.

November recorded a sharp spike to 1.56 billion litres, a 74.4 per cent increase, making imports equivalent to almost 98 per cent of total consumption that month. Imports eased in December to 1.31 billion litres, down 16.3 per cent, but still represented about two-thirds of monthly demand.

Similarly, domestic refinery supply, largely from the Dangote Petroleum Refinery, showed a gradual but uneven improvement over the year. Supply rose from 592.1 million litres in January to 694.4 million litres in February, an increase of 17.3 per cent, and edged up further to 709.9 million litres in March, up 2.2 per cent. Output declined in April by 9.1 per cent to 645 million litres, and fell further in May by 11.1 per cent to 573.5 million litres.

The downward trend continued in June and July, with supply dropping to 543 million litres (down 5.3 per cent) and 511.5 million litres (down 5.8 per cent), respectively. Domestic supply rebounded in August by 20.0 per cent to 613.8 million litres, dipped slightly in September by 11.1 per cent to 545.6 million litres, and eased further in October to 530.1 million litres, down 2.8 per cent.

Output improved again in November to 585 million litres, a 10.4 per cent increase, before surging sharply in December to 992 million litres, representing a 69.6 per cent month-on-month rise and the strongest domestic supply performance of the year.

A further breakdown showed that in January, imports accounted for about 48 per cent of daily petrol consumption, while domestic refineries supplied around 37 per cent. Import dependence widened significantly in May, with marketers meeting about 71 per cent of daily demand, while domestic refineries contributed just 34 per cent. However, by December, domestic supply rose to about 50 per cent of daily consumption, narrowing the gap with imports, which accounted for roughly 66 per cent, reflecting the highest level of domestic participation recorded in 2025.

Imports consistently exceeded domestic supply in most months. In May, for instance, marketers imported 1.20 billion litres, representing about 71 per cent of total consumption for that month, while domestic refineries supplied just 573.5 million litres.

In contrast, December recorded the narrowest gap, with imports of 1.31 billion litres against the domestic supply of 992 million litres, as Dangote ramped up output and daily consumption rose to 63.7 million litres.

A further breakdown of the data showed that in January 2025, Nigeria recorded a daily average petrol consumption of 51.5 million litres, translating to 1.60 billion litres for the month. Of this volume, petrol importing marketers supplied an average of 24.7 million litres per day, amounting to 765.7 million litres. In comparison, domestic refineries delivered an average of 19.1 million litres daily, or 592.1 million litres in total.

In February, daily average consumption moderated to 50.4 million litres, with total monthly demand of 1.41 billion litres. Imports accounted for an average of 27.5 million litres per day, or 770 million litres, while domestic refineries supplied 24.8 million litres daily, amounting to 694.4 million litres.

For March, average daily consumption rose slightly to 50.9 million litres, bringing total demand to 1.58 billion litres. Petrol imports averaged 28.7 million litres per day, totalling 889.7 million litres, while domestic refineries supplied 22.9 million litres daily, or 709.9 million litres for the month.

In April, consumption increased further to a daily average of 55.2 million litres, with total demand of 1.66 billion litres. Importers supplied 28.7 million litres per day, amounting to 861 million litres, while domestic refinery output averaged 21.5 million litres daily, totalling 645 million litres.

Data for May showed average daily consumption of 54.4 million litres, translating to 1.69 billion litres for the month. Imports rose sharply to an average of 38.6 million litres per day, or 1.20 billion litres, while domestic refinery supply declined to 18.5 million litres daily, amounting to 573.5 million litres.

In June, daily average consumption fell to 48.0 million litres, with total demand of 1.44 billion litres. Petrol imports averaged 32.6 million litres per day, totalling 978 million litres, while domestic refineries supplied 18.1 million litres daily, or 543 million litres.

For July, average daily consumption declined slightly to 47.2 million litres, bringing monthly demand to 1.46 billion litres. Importers supplied 36.1 million litres per day, amounting to 1.12 billion litres, while domestic refineries delivered 16.5 million litres daily, totalling 511.5 million litres.

In August, daily consumption improved to 48.4 million litres, with a total demand of 1.50 billion litres. Imports averaged 26.4 million litres per day, or 818.4 million litres, while domestic refineries supplied 19.8 million litres daily, amounting to 613.8 million litres.

September recorded the lowest consumption levels of the year, with daily average demand at 43.8 million litres and total consumption of 1.31 billion litres. Import volumes averaged 22.1 million litres per day, totalling 685.1 million litres, while domestic refinery supply stood at 17.6 million litres daily, or 545.6 million litres.

In October, consumption rebounded sharply to a daily average of 56.7 million litres, translating to 1.76 billion litres for the month. Imports averaged 28.9 million litres per day, amounting to 895.9 million litres, while domestic refineries supplied 17.1 million litres daily, totalling 545.6 million litres.

For November, average daily consumption eased to 52.9 million litres, with total demand of 1.59 billion litres. Importing marketers supplied an average of 52.1 million litres per day, totalling 1.56 billion litres, while domestic refinery output averaged 19.5 million litres daily, amounting to 585 million litres.

In December, petrol consumption surged to its highest level of the year, averaging 63.7 million litres per day and reaching 1.97 billion litres in total. Imports accounted for an average of 42.2 million litres per day, or 1.31 billion litres, while domestic refineries recorded their strongest performance of the year, supplying an average of 32.0 million litres daily, totalling 992 million litres.

Since the Dangote Petroleum Refinery began phased commercial operations in late 2024, its officials and some industry stakeholders have repeatedly asserted that the facility has the capacity to satisfy Nigeria’s petrol needs and reduce, if not eliminate, the need for imports.

Built with an ambitious 650,000‑barrel‑per‑day capacity, the plant has been positioned by its backers as a potential game‑changer for Nigeria’s downstream petroleum sector

In a statement outlining the refinery’s production profile, Anthony Chiejina, Group Chief Branding and Communications Officer of Dangote Industries Limited, said the plant was already producing above current national demand. He stated:

“Our refinery is currently loading over 45 million litres of PMS and 25 million litres of diesel daily, which exceeds Nigeria’s demand.”

Chiejina added that the refinery’s output was supporting nationwide supply stability and reducing dependency on imported products, with improved local production helping to moderate foreign exchange outflows and strengthen the naira.

Recently, the National Publicity Secretary of the Independent Petroleum Marketers Association of Nigeria, Chinedu Ukadike, revealed that marketers had been sourcing all their petrol supplies from Dangote and that “nobody is importing now,” even during high‑demand periods such as the Christmas season. He said:

“Well, since Dangote has reduced his price, and we have not complained of a shortage of products. There is no importation. So all the supplies we are getting now are from Dangote.”

Also, in earlier remarks reported in 2025, the Dangote group chairman, Aliko Dangote, asserted that the refinery had sufficient refined products in storage to meet domestic needs, saying:

“Right now, we have more than half a billion litres in storage. The refinery is producing enough refined products, gasoline, diesel, and kerosene to meet all of Nigeria’s needs.”

However, these claims remain contested. While some marketers and refinery officials describe importation as unnecessary under current supply arrangements, others note that domestic refining capacity has not yet consistently matched national consumption, and that imports continue to play a role in bridging supply gaps.

Commenting in an earlier report, renowned energy economist Professor Wumi Iledare, noted that Nigeria’s reliance on imported petrol has declined but has not been eliminated. He also warned against claims that fuel importation has ended following increased domestic supply from the Dangote Petroleum Refinery.

In a personal note titled “Dangote Refinery, Petrol Imports, and Market Reality,” Iledare said recent assertions that Nigeria no longer imports petrol reflect “understandable optimism” but overstate the economic reality of the downstream oil market.

“Recent claims that petrol importation into Nigeria has ended because Dangote Refinery now meets domestic demand reflect understandable optimism, but they overstate economic reality.

Dangote Refinery has significantly improved domestic supply conditions and reduced Nigeria’s marginal reliance on imported petrol. However, neither Dangote Refinery nor petroleum marketers determine national supply outcomes,” he said.

Iledare, who also serves as Executive Director of the Emmanuel Egbogah Foundation, Abuja, acknowledged that the Dangote Refinery has significantly improved domestic supply conditions and reduced Nigeria’s marginal dependence on imported petrol.

However, he stressed that neither the refinery nor the petroleum marketers determines national supply outcomes. According to him, Nigeria’s downstream petrol market operates within an oligopolistic, import-parity–anchored framework, where prices and supply stability are shaped by the option to import, rather than the physical presence of imported cargoes.

“Nigeria’s downstream petrol market operates within an oligopolistic, import-parity–anchored framework, where prices and supply stability are disciplined by the option to import, not merely the act of importing.

Even when no petrol cargoes are landing, the credible threat of imports remains the market anchor. Importation also continues to serve as a risk-management tool for stock security, demand surges, logistics disruptions, and refinery operational risks,” Iledare said, adding that importation continues to function as a risk-management tool for stock security, demand surges, logistics disruptions, and refinery operational risks.

The energy economist further noted that the Petroleum Industry Act entrenches liberalisation and competition in the downstream sector, leaving no room for discretionary declarations that petrol imports have ended.

“The PIA does not permit discretionary declarations that imports have ended. Sustainable price stability and energy security arise from market discipline, infrastructure efficiency, foreign exchange liquidity, and regulatory credibility, not announcements,” he said.

Iledare argued that the appropriate policy narrative should focus on reduced marginal import dependence, rather than import elimination, warning that imprecise language could undermine policy credibility.

“The correct policy framing, therefore, is reduced marginal import dependence, not import elimination. Precision in language matters because credibility in energy policy is built on economic fundamentals, not celebratory headlines,” he added.

In his expert opinion, the Chief Executive Officer of petroleumprice.ng, Jeremiah Olatide, said the new data indicates that Nigeria’s domestic refining capacity has grown significantly over the past three years, rising from less than five per cent in 2022 to about 40 per cent in 2025.

Olatide, who disclosed this in a telephone conversation on Sunday, described the development as a major milestone in the country’s long-standing quest to reduce dependence on imported petroleum products.

“In 2022, local refining was less than five per cent. But three years later, it has increased to around 40 per cent according to NMDPRA. I think that is good, significant, and a big milestone,” Olatide said.

He explained that while the progress was commendable, Nigeria must push further to achieve meaningful macroeconomic stability. According to him, domestic refining must account for at least 70 per cent of national fuel consumption, with imports limited to 30 per cent.

“Local refining needs to be 70 per cent while import takes 30 per cent. That is the point where this would have direct influence on our economy, create more jobs, stabilise our naira, and deliver other benefits,” he stated.

Olatide noted that 2025 marked a turning point for the sector, largely driven by improved refinery performance and policy shifts aimed at boosting local supply.

He expressed optimism that subsequent industry reports would reflect further improvements. “By and large, I think in the year 2025, we have had a massive improvement and surge in local refining. Hopefully, subsequent reports will go up from the local refining angle, because that is what we need for economic stability,” he added.

He also identified crude oil availability as a critical constraint, particularly for the Dangote Refinery, which plays a dominant role in Nigeria’s refining landscape. Olatide said increasing crude allocation to the refinery could significantly reduce fuel imports.

“I hope in the new year, Dangote would have further access to crude, up from 30 to 40 per cent. More access to crude will really help, and then importation will reduce. The reason importation is still competing is largely because of pricing,” he explained.

Despite the positive outlook, Olatide raised concerns over conflicting production figures being reported by industry stakeholders. He pointed to recent claims by the new Chief Executive Officer of Dangote Refinery, David Bird, who said the refinery was loading about 1,000 trucks daily, equivalent to roughly 50 million litres of petroleum products.

“If you put those figures together, it suggests Dangote alone is doing about 60 to 70 per cent of our daily consumption,” Olatide said.

However, he noted that official figures from the NMDPRA paint a different picture. “NMDPRA is saying local refineries, including Dangote, are doing between 37 and 40 per cent. So clearly, there are conflicts in the reporting.”

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Business

26 states lean on FAAC as wage bills outstrip IGR

Published

9 hours ago

September 7, 2026

Newsbreak365_Admin

At least 26 state governments could not generate enough internal revenue to cover their personnel costs in 2025, as they continue to depend on allocations from the Federation Account despite a significant improvement in their finances.

An analysis by The PUNCH showed that only eight of the 34 states covered by a new BudgIT report generated Internally Generated Revenue higher than their personnel expenditure during the year. The eight states were Lagos, Enugu, Ogun, Delta, Kaduna, Kwara, Abia and Anambra.

The remaining 26 states generated about N1.16tn internally but spent approximately N1.91tn on personnel, leaving a gap of about N747bn between their combined IGR and wage-related expenditure.

The findings are contained in BudgIT’s 2026 report titled ‘Nigeria’s Economic Reforms: What Has Changed Across Nigeria’s States? An Analysis of State Finances in the Post-Subsidy Years’.

The report analysed actual figures contained in states’ full-year budget implementation reports for 2022 and 2025. Akwa Ibom and Rivers were excluded because of incomplete or unavailable data.

The figures do not imply that states are expected to finance salaries exclusively from IGR because statutory allocations are a legitimate source of government revenue. They, however, show the extent to which many states would struggle to meet even their personnel obligations without revenue distributed by the Federation Account Allocation Committee.

This dependence has persisted despite the sharp rise in revenues available to states following the removal of petrol subsidy, foreign exchange reforms, and higher revenues accruing to the Federation Account.

According to BudgIT, aggregate FAAC allocations increased from N3.43tn in 2022 to N11.38tn in 2025, representing a 232.06 per cent increase and a compound annual growth rate of 50.2 per cent.

IGR also increased substantially, rising from N1.57tn to N4.15tn over the same period, but its 165.01 per cent growth and 38.38 per cent CAGR lagged the expansion in FAAC receipts.

Consequently, states became more dependent on federal transfers despite generating more revenue internally. FAAC accounted for 68.7 per cent of aggregate state revenue in 2022 but increased to 73.3 per cent in 2025. Conversely, IGR’s share fell from 31.4 per cent to 26.7 per cent.

BudgIT said this showed that “despite improvements in domestic revenue mobilisation, many states remained heavily reliant on transfers from the Federation Account.”

It stressed that improving domestic revenue mobilisation would be critical to strengthening states’ long-term fiscal sustainability and reducing their dependence on federal transfers.

The report said, “Although statutory allocations accounted for a larger share of the overall increase in revenues, strengthening domestic revenue mobilisation remains essential for improving long-term fiscal sustainability and reducing dependence on federal transfers.”

A state-by-state comparison by The PUNCH showed wide disparities between personnel expenditure and internally generated revenue. Yobe generated only N15.42bn internally in 2025 but spent N76.34bn on personnel. Its personnel bill was therefore almost five times its IGR, leaving a shortfall of about N60.91bn.

Taraba generated N17.89bn against personnel expenditure of N55.60bn, meaning its personnel costs were more than three times its IGR. Sokoto recorded IGR of N20.58bn but personnel expenditure of N58.65bn, while Adamawa generated N24.14bn internally against a N65.73bn personnel bill.

Jigawa’s personnel expenditure stood at N92.66bn compared with IGR of N35.27bn, while Benue spent N73.94bn on personnel after generating N29.38bn internally.

Similarly, Kogi generated N36.50bn but recorded personnel expenditure of N89.20bn, while Kebbi’s N18.41bn IGR was less than half of its N44.82bn personnel expenditure.

Other states with personnel costs exceeding IGR included Bauchi, Bayelsa, Borno, Cross River, Ebonyi, Edo, Ekiti, Gombe, Imo, Kano, Katsina, Nasarawa, Niger, Ondo, Osun, Oyo, Plateau and Zamfara.

In absolute terms, Oyo recorded the largest gap among the 26 states. The state generated N102.52bn internally but spent N170.04bn on personnel, creating a difference of about N67.51bn.

Yobe followed with a gap of about N60.91bn, while Jigawa recorded N57.39bn. Ondo’s personnel expenditure of N99.58bn exceeded its N45.63bn IGR by N53.94bn, while Kogi recorded a gap of N52.70bn. Bayelsa generated N52.15bn against N98.75bn in personnel expenditure, leaving a difference of N46.60bn.

Some states were much closer to financing their personnel costs internally. Edo generated N98.45bn and spent N99.27bn on personnel, leaving a gap of less than N1bn. Gombe generated N36.36bn compared with personnel expenditure of N53.95bn, while Osun recorded N58.80bn in IGR against N87.46bn in personnel costs.

The data showed that the situation improved slightly compared with 2022, when 28 of the 34 states had personnel expenditure above their IGR. Abia, Delta, Enugu and Kwara moved from having IGR below personnel expenditure in 2022 to generating enough internally to cover their wage-related costs by 2025. However, Ebonyi and Jigawa moved in the opposite direction.

The PUNCH further observed that the weakness in state-level fiscal independence is partly obscured by the enormous size of Lagos’ revenue base. Lagos generated N1.85tn in IGR in 2025, up from N656.35bn in 2022. Its IGR alone accounted for about 44 per cent of the N4.15tn generated by the 34 states covered by the report.

The state spent N333.67bn on personnel, meaning its IGR was more than five times its personnel expenditure. Enugu generated N406.77bn compared with personnel expenditure of N56.40bn, while Ogun generated N237.65bn against N151.27bn in personnel costs. Delta recorded N206.44bn in IGR and N197.81bn in personnel expenditure.

Other states whose IGR exceeded their personnel bills were Kaduna, which generated N86.72bn against N77.63bn; Kwara, N85.21bn against N65.22bn; Abia, N66.86bn against N62.26bn; and Anambra, N54.24bn against N39.95bn.

Lagos’ dominance also means the aggregate IGR position appears considerably stronger than that of the typical state. Excluding Lagos, the remaining 33 states generated about N2.30tn internally in 2025. Their combined personnel expenditure stood at roughly N2.56tn, meaning personnel costs exceeded IGR by about N254bn.

Enugu also recorded an exceptional increase that boosted the overall IGR figure. Its IGR jumped from N25.12bn in 2022 to N406.77bn in 2025, an increase of N381.66bn and a CAGR of 153.01 per cent, the highest among the states.

BudgIT, however, noted that the increase was largely attributable to proceeds collected by the Enugu State Housing Development Corporation from the government’s intervention in the landed property market.

The organisation expressed reservations about the classification and noted the potentially cyclical nature of the receipts. Niger recorded the second-fastest IGR growth, with collections rising from N12.11bn to N66.37bn, while Abia increased from N14.67bn to N66.86bn.

But not every state benefited from the IGR expansion. Three states recorded lower IGR in 2025 than in 2022. Jigawa suffered the biggest decline, falling from N59.40bn to N35.27bn. Sokoto’s IGR dropped from N23.60bn to N20.58bn, while Ebonyi declined marginally from N23.89bn to N23.25bn.

Jigawa’s position was particularly significant because its personnel expenditure rose from N52.37bn in 2022 to N92.66bn in 2025, while its IGR declined, substantially increasing its dependence on other revenue sources.

The Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, recently called for stronger fiscal federalism, improved revenue generation and economic diversification to strengthen Nigeria’s resilience to economic shocks. The minister spoke in Owerri, the Imo State capital, at the 2026 National Council on Finance and Economic Development Retreat.

Speaking on the theme ‘Strengthening Fiscal Federalism for Equity, Sustainable Development and Economic Resilience in a Volatile Global Economy,’ Oyedele insisted on the retreat interrogating the current allocation and derivation principles, even as he called for greater fiscal responsibility, accountability and cooperation among Nigeria’s three tiers of government to achieve sustainable economic growth.

The minister urged state governments nationwide to strengthen their Internally Generated Revenue, attract investments and create jobs rather than rely heavily on federal allocations.

Also speaking, the Imo State Governor, Hope Uzodimma, who was represented at the event by his Deputy, Chinyere Ekomaru, said that states must be empowered to generate more revenue and efficiently manage available resources, pointing out that continued dependence on oil revenue was no longer sustainable.

An economist and former Vice-Chancellor of the University of Uyo, Prof Akpan Ekpo, recently stressed that “states have to think of new ways of increasing their IGRs.” He urged the states to increase their revenue by increasing service delivery, which will attract more revenue.

A renowned economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, earlier said that a majority of states were not financially sustainable and were at risk of insolvency without a boost in investment.

He said, “This issue is a fiscal sustainability problem, showing that many states are not fiscally sustainable and need to work towards it; and that the states need to do a lot more to attract more investments to their states so that their level of dependence on the Federal Allocation Accounts Committee would reduce.

He also said that the state governors should reduce their bloated staff and political appointees. “Most of these states have heavy overhead and they have very bloated bureaucracy, political appointees and they are putting a lot of pressure on their resources, so they have to do some rationalisation on their staff, many of them don’t need more than 50 per cent of their workforce but for political reasons, they put all manner of characters on their payroll including the local government,” he said.

Source: punchng.com

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Business

My customers taught me Yoruba – London trader, ‘Olakunle Oshodi’

Published

2 days ago

September 5, 2026

Newsbreak365_Admin

You are an Iraqi based in London, United Kingdom, how did you learn to speak Yoruba?

I trade at Woolwich Market. That is where I work and where I started meeting many Nigerian customers, especially Yoruba people.

Many of the Nigerians I met at the market spoke Yoruba when they came to buy things from me. At first, I did not understand what they were saying, so I became curious and started asking them to interpret the words they used. That was how I gradually started learning Yoruba from my customers.

What do you sell?

I used to sell pepper and fruit, but now I sell cosmetics and hair. My business has changed over time, but I have continued interacting with many Yoruba customers at the market. Through those interactions, I have also continued learning the language.

How did you first become interested in the Yoruba language?

About 95 per cent of my customers are Yoruba. Whenever they came to buy things, they would speak Yoruba to me. Instead of just listening to them, I started asking questions whenever I heard words I did not understand. I would ask them what the words meant, and that was how I learnt little by little.

The more I listened to them, the more interested I became. I started enjoying the language because I think Yoruba is a sweet language. That was what encouraged me to keep learning it.

What do you like about the Yoruba language?

I like the way the language sounds. For me, it is an interesting language, and because I hear my customers speak it regularly, it became easier for me to pick it up. I also like the way Yoruba people communicate with me when they come to the market.

How did you get the name “Olakunle Oshodi”?

Oh, one of my customers gave me the name. She is a lovely person, and she is Yoruba. She said the name was good for me, and that was how I got the name “Olakunle Oshodi.”

Do you have any family connection to Nigeria?

No, I don’t have any family connection to Nigeria. I have never even been there. My connection with Yoruba came through my customers and the people I have met at the market.

How long have you been learning Yoruba?

It has been about three years. I can speak it because I really like the language, so it has not been that hard for me. I have been learning mainly through my customers and through everyday conversations at the market.

What made you decide to speak Yoruba with your customers?

Basically, I just wanted to learn. You know, Yoruba people joke with you and laugh with you. They want happiness, and they are not fake. That is why I love them.

When they come to the market, there is always a lot of interaction. They joke, laugh, and make you feel comfortable. So, for me, learning the language became a way of connecting with them better.

Yoruba people are lovely. Even when wahala comes sometimes, they are still just lovely. I enjoy the way they joke and laugh with you. They want happiness, and that is something I really like about them.

Being around them has also helped me learn more about the language because I speak Yoruba almost every day with my customers. The more I interact with them, the more I learn.

Has speaking Yoruba affected your business?

Yes, it has made the business grow. Speaking Yoruba has helped me connect with my customers better, and I believe that has been good for my business.

When customers realise that I can speak their language, it creates a different kind of relationship. We can joke together, laugh together, and communicate more easily.

How do customers react when they realise that you can speak Yoruba?

They are shocked, and they laugh. I see them happy, and I laugh with them. Sometimes, you can see that they did not expect a white man to speak Yoruba, so their reaction is usually one of surprise. Most of the time, they are not expecting it at all, especially when they first hear me respond to them in Yoruba.

I enjoy seeing their reaction because you can immediately see the happiness on their faces. Sometimes, they will look at me again as if they are trying to confirm whether I really understand what they are saying. It is always a funny and enjoyable moment for me.

Speaking Yoruba also makes the interaction more relaxed. Instead of just being a customer-and-trader relationship, we can joke together, laugh together, and have a better conversation. I enjoy that connection with them. I laugh with them because it makes the interaction more enjoyable, and I am happy when I see that they appreciate my effort to speak their language.

What goes through your mind when customers are surprised by your Yoruba?

I just enjoy the moment. They are shocked and laughing, and I see that they are happy. So, I laugh with them. For me, it is a nice experience because it shows that they appreciate the fact that I am trying to speak their language.

Has speaking Yoruba helped you gain your customers’ trust?

Yes, 100 per cent. I’m always with them. I spend a lot of time interacting with my customers at the market, so speaking Yoruba has helped me become closer to them. When I speak their language, they know that I am making an effort to understand them and communicate with them in a way that makes them comfortable.

I am not just there to sell something to them; I enjoy being around them and having conversations with them. That connection is important to me.

Have you ever had a funny experience while speaking Yoruba?

Yes, I have. They say, “Ah-ah!” when I speak. They are usually surprised when they hear me speaking Yoruba, and that reaction can be funny.

Sometimes, they cannot believe what they hear. They will react with “Ah-ah!” because they did not expect me to speak the language.

Even though sometimes wahala can come, it is still just lovely being around them. My experience with them has been positive, and they have also played an important role in helping me learn the language.

Do you think your customers have also enjoyed teaching you Yoruba?

Yes, because most of what I know came from interacting with them. When they speak Yoruba and I do not understand a word, I ask them what it means. That is how I learn.

It has been a gradual process. I listen, ask questions, and then try to use the words when I speak to them. I enjoy the learning process.

What are you looking forward to about visiting Nigeria?

As I said earlier, I have never been to Nigeria, but I have plans to go. I have not had the opportunity to visit yet, even though I have developed such a strong interest in the Yoruba language and culture.

I have a plan to go. I have never been there before, so I would like to experience the country and meet more people. I have learnt Yoruba mainly from people in London, so visiting Nigeria would allow me to experience the language and culture differently.

What does Yoruba culture mean to you?

I love the culture. I love Yoruba natives. My connection with Yoruba has grown through the people I meet and the language I have learnt from them. Even though I have never been to Nigeria, I have developed a love for the culture through my customers and the people around me.

What would you like Yoruba people to know about your connection with their language?

I want them to know that I love all of them, and I want to learn more of the language if I can. I speak well, but I only need time. One day, they will see. I want them to know that my interest in Yoruba is genuine. I did not learn it because somebody forced me to; I learnt it because I met Yoruba people, I enjoyed being around them, and I fell in love with the language.

Source: punchng.com

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Business

Tax reform has reduced burden on low-income earners — Revenue board

Published

3 days ago

September 4, 2026

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The Joint Revenue Board has said Nigeria’s tax reform has reduced the burden on low-income earners and eliminated multiple nuisance taxes.

The Executive Secretary of the JRB, Olusegun Adesokan, stated this while giving an overview of the progress recorded one year into the implementation of the tax reform.

In a post obtained from the board’s X handle on Friday, Adesokan spoke at the 160th meeting of the JRB in Kaduna State, with the theme, “One Year of Reform: Assessing Progress and Addressing Challenges.”

He said the reform had also provided relief for low-income earners and micro-scale businesses, contrary to concerns that it had increased the tax burden.

“Addressing the misconception that the tax reform has increased taxes, the reform has rather reduced the tax burden on low-income earners, eliminated multiple nuisance taxes while providing reliefs for low-income earners and micro-scale businesses,” he said.

Adesokan said 18 state Houses of Assembly had domesticated the model harmonised taxes and levies law, which was designed to address overlapping and multiple taxation across the country.

According to him, the legislation had reduced more than 50 collection items previously administered by states and local government areas to nine sub-heads.

He added that the law had also abolished cash collection and the mounting of roadblocks for revenue collection.

The Executive Secretary said the measures had recorded significant progress in harmonising taxes and levies across the subnational governments.

The JRB, Nigeria’s apex body for revenue administration, convened the meeting to assess progress under the new revenue regime, identify gaps, and address emerging challenges.

The meeting was declared open by the Kaduna State Governor, Senator Uba Sani, who said the reform had expanded opportunities for domestic resource mobilisation and strengthened the country’s capacity to finance development.

Sani urged the JRB to identify bottlenecks affecting revenue collection, institutional weaknesses creating friction between revenue authorities and taxpayers, and opportunities for technology to improve efficiency in revenue administration.

He said, “The objective of the reform should not be simply to collect revenue; it should be to build a tax system in which compliance becomes easier, enforcement becomes more intelligent and voluntary compliance becomes a norm.”

The Executive Secretary appreciated Governor Uba Sani for hosting the 160th JRB meeting and for his consistent support of the tax reform initiative. He particularly commended the governor for nominating a member of the Board and outgoing Executive Chairman of Kaduna State Internal Revenue Service, Mr Jerry Adams, as his running mate for the 2027 gubernatorial election.

Sani expressed his delight with the tax reform, stressing that apart from eliminating duplication of taxation, it has enhanced revenue generation.

He observed that the national tax revenue has so far risen to N21.6 trillion since President Bola Tinubu introduced tax reform in 2026.

According to him, the nation’s revenue was approximately ₦10.1 trillion in 2023, ₦21.6 trillion in 2024, and about ₦36.8 trillion in 2025.

In his opening remarks, JRB Chairman, Dr Zacch Adedeji, represented by the Executive Director, Finance and Corporate Services, Nigeria Revenue Service, Muhammad Abubakar, said the meeting was a call for revenue authorities to take stock of the progress made, address identified gaps and confront emerging challenges.

He said the ultimate measure of the reform’s success must be improved revenue mobilisation, greater compliance, a better taxpayer experience, and stronger contributions to national development.

Source: punchng.com

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