Connect with us

Business

FG rallies private sector to bridge broadband gap

Published

on

The Federal Government on Wednesday called on private-sector players to partner with it to close Nigeria’s last-mile broadband gap, saying that massive public investment in digital infrastructure must now be matched by device affordability, service innovation, and targeted connectivity for critical institutions.

The Minister of Communications, Innovation and Digital Economy, Dr Bosun Tijani, made the call while speaking with journalists on the sidelines of the Flagship Nigeria: Electrification + Connectivity Convening held in Abuja.

Tijani said Nigeria was currently leading Africa in deep digital infrastructure investments, stressing that improved access to quality internet would become visible over the next year as projects begin to come on stream.

“As a government, we’re very aware of our responsibility and the need to deepen access,” he said. “There is no country in Africa today that is investing in deepening its digital infrastructure as deeply as Nigeria is doing.”

According to him, Nigeria is the only African country investing in a 90,000-kilometre fibre-optic network project led by the World Bank, while also committing resources to two new communications satellites.

He added, “We’re the only country in Africa that is currently doing that, but also investing in two communication satellites. The only country that is also investing in an additional 3,700 towers for rural areas, which means we can now bring online about 20 million Nigerians that are currently unconnected at all.”

The minister recalled that when the present administration assumed office, the telecommunications sector was under strain.

He said the decision to allow a modest tariff increase had restored profitability and unlocked fresh capital inflows.

“When the telecommunication sector was struggling when we came in, we allowed for tariffs to go up a bit, which means they are now profitable. And on their own, we’ve seen that they’ve invested over $1bn into our economy as well,” he stated.

Tijani noted that infrastructure quality directly determines service quality, arguing that years of underinvestment had constrained broadband expansion.

“In the next couple of years or months, you will start to see improved access because the quality of access is dependent on the quality and investment in infrastructure, which, as a country, we’ve not done in many years in digital infrastructure. You’re about to see that change. In about a year, you start to see great changes because these infrastructures will start to come alive,” he said.

See also  CBN denies selling $1.2bn forex to oil firms

Beyond infrastructure, the minister emphasised that connectivity without skills would limit impact.

He said the ministry had separated digital skills for technology professionals from basic digital literacy for everyday users.

He referenced the ongoing Three Million Technical Talent programme, which aims to train three million young Nigerians in advanced digital skills.

“This is a project that we started in 2023 that has trained over 150,000 people already. But we’re not stopping there,” he added.

For ordinary Nigerians, including traders and market women, Tijani said the government was preparing to launch a nationwide digital literacy programme delivered via mobile phones and local languages.

He disclosed that the initiative would leverage a government-backed large language model designed to understand and communicate in Nigerian languages.

On questions linking digital infrastructure to electronic transmission of election results, the minister declined to comment directly on electoral matters, insisting that his mandate was infrastructure development.

“Our role as a ministry, I will not speak to the elections, but my role is to deepen digital infrastructure. And we’ve been very clear about the fact that this is what the President has asked us to do,” he said.

He stressed that all ongoing projects had presidential backing and were aligned with the administration’s ambition to grow the economy to $1tn.

Every one of our digital infrastructure projects is a project that the President has approved. The President has a thorough understanding of the role of the digital economy in driving this agenda of the $1tn economy. And without our investment, the President knows that we can’t get there,” Tijani stated.

Speaking on the purpose of the convening, Tijani said that even with expanded fibre and satellite capacity, affordability and institutional connectivity remained major hurdles.

“If the internet is now ubiquitous and affordable, can every Nigerian also afford the right mobile phones, tablets, or laptops that they need to enjoy the internet? It’s not something you enjoy without those things,” he said.

He said bridging the last mile would require collaboration with private-sector players to connect schools, hospitals, security agencies, and other public institutions.

See also  CBN reduces interest rate to 27%

“How do we ensure that when we invest in the infrastructure, it gets into schools, not only universities, but also secondary schools across the country? That’s the last mile work that we need the private sector to do,” he noted.

He added that internet service providers must also design tailored packages for critical sectors.

“How do we ensure that we can support ISPs to make sure they have the right bundles and packages for hospitals, for police stations? These are things that we have to work with the private sector to achieve,” he said.

On the planned satellites, Tijani said Nigeria had been a regional pioneer since it first procured a communications satellite under former President Olusegun Obasanjo, noting that no other West African country currently operates one.

However, he acknowledged that the existing satellite had aged and required replacement.

“Our satellite is now old, and we need to procure new ones. President Bola Tinubu has approved that we should procure new ones. Satellite is one of the ways in which you can connect difficult-to-reach locations and rural areas. Also, the security agencies use our communications satellite deeply as well. So if we don’t have modern ones that can support all these efforts, it weakens our digital economy,” Tijani explained.

Providing timelines, the minister said the deployment of the fibre project was targeted for the second or third quarter of the year, while the new satellite was expected to become operational next year.

“We’re always very clear through our strategic blueprints that a fibre project, for instance, will get to the point where we’re deploying either by Q2 to Q3 this year, which is what we’re still working towards. That project is moving forward. We’ve been able to secure the bulk part of the funding,” he said.

“The satellite in itself, we expect, should come alive. We’ve now been able to select the companies that will provide it. We expect that it should be coming alive sometime next year.”

Also speaking, the Chief Executive Officer of the Partnership for Digital Access in Africa, Ibrahima Guimba-Saidou, said the convening aligns with Africa’s broader ambition to connect one billion people to the internet by 2030.

See also  Nigerians lose millions in dashed Umrah dreams due to US-Iran war

He commended Nigeria for what he described as a clear policy direction and significant investments in connectivity infrastructure, digital devices and skills development.

However, he warned that electricity remains a fundamental gap in the continent’s push for meaningful digital inclusion.

Guimba-Saidou explained that the organisation’s Mission 300 initiative is designed to expand electricity access in underserved and remote communities, enabling schools, health centres, markets and households to take full advantage of digital services.

“This is about making connectivity relevant to the people who need it the most, not just those in major cities,” he said, urging deeper collaboration between government and private sector players to narrow the digital divide in a faster and more sustainable manner.

In his remarks, the World Bank Country Director for Nigeria, Mathew Verghis, noted that while Nigeria faces some of the most significant electricity access and backbone infrastructure shortfalls globally, it also possesses vast growth prospects anchored on its large and youthful population.

He stressed that digital inclusion rests on three interdependent pillars: reliable electricity, broadband infrastructure and affordable devices.

According to him, progress in one area without the others would limit impact.

He called for better coordination in the planning, construction and financing of power and fibre networks, arguing that integrated investment would lower costs and accelerate universal access.

Verghis added that the World Bank remains prepared to work with federal and state governments, alongside private sector stakeholders, to translate the vision of combined power and broadband expansion into tangible benefits for millions of Nigerians.

The PUNCH earlier in December 2025 reported that the federal government plans to bankroll the construction of 3,700 telecom towers in rural areas, a move aimed at connecting millions of citizens who currently lack reliable mobile and internet services.

Telecom operators often avoid sparsely populated rural areas due to low profit potential, focusing instead on urban centres where investment can be recouped.

The government’s intervention will extend mobile and internet services to over 23 million Nigerians who presently lack access.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

TUMBLR

INSTAGRAM

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Nigeria crude output misses OPEC quota eighth straight month

Published

on

Nigeria’s average daily crude production is still below the 1.5-million-barrel quota set for the country by the Organisation of the Petroleum Exporting Countries.

According to the OPEC Monthly Oil Market Report released in April, Nigeria’s crude production in March was 1.38 mbpd. While there was a 69,000 bpd increase from the 1.31 mbpd recorded in February, the figure is still 117,000 bpd below the OPEC quota.

The figures for February indicate a month-on-month decline of 146,000 barrels per day, widening the country’s shortfall from its OPEC production allocation. This is the eighth consecutive month the country has failed to meet the OPEC quota since July 2025.

It could be recalled that although Nigeria recorded a marginal improvement in January, when production rose from 1.422 mbpd in December 2025 to 1.459 mbpd, the rebound was short-lived as output fell significantly in February.

Earlier data from the Nigerian Upstream Petroleum Regulatory Commission had also shown that crude oil production weakened at the end of 2025. Production declined from 1.436 mbpd in November 2025 to 1.422 mbpd in December, before recovering slightly in January.

In 2025, Nigeria’s crude oil production fell below its OPEC quota in nine months of the year, meeting or slightly exceeding the target only in January, June, and July. Nigeria opened 2025 strongly, producing 1.54 mbpd in January, about 38,700 barrels per day above its OPEC allocation.

However, production slipped below the quota in February at 1.47 mbpd and weakened further in March to 1.40 mbpd, marking one of the widest shortfalls during the year.

See also  CBN denies selling $1.2bn forex to oil firms

Although output recovered modestly in April (1.49 mbpd) and May (1.45 mbpd), Nigeria remained below its OPEC ceiling until June, when production edged up to 1.51 mbpd, slightly exceeding the quota.

The country sustained the momentum in July with 1.51 mbpd before falling below the benchmark again in subsequent months.

Our correspondent reports that the figures recorded in the first quarter of 2026 are below the government’s budget benchmark.

Recently, the Chief Executive Officer of the Nigerian Upstream Petroleum Regulatory Commission said oil production (crude and condensate) reached 1.8 mbpd in March.

However, an official of the commission told The PUNCH that the recovery started in mid-March after all assets on turnaround maintenance resumed operations. The official expressed optimism that crude production would meet the OPEC quota in April.

The PUNCH reports that Nigeria’s inability to meet its OPEC production quota is not only affecting its oil export earnings but also adversely impacting domestic refineries that are starved of feedstock for their operations.

Recall that The PUNCH exclusively reported on March 9, 2026, that the Federal Government, through the Nigerian National Petroleum Company Limited, had begun moves to secure crude oil supply for the Dangote Petroleum Refinery through third-party international traders in a bid to sustain domestic refining operations.

“Leveraging our global crude trading network, we are sourcing third-party crude for the refinery at prices that are competitive with prevailing international market rates,” a senior official at NNPC, who spoke in confidence due to the lack of authorisation to speak on the matter, had told The PUNCH.

See also  Wema Bank is the longest surviving indigenous bank in Nigeria.

The report showed that several heavyweight OPEC producers implemented sharp cuts. Saudi Arabia’s output plunged by 2.35 mbpd to 7.76 mbpd, while Iraq slashed production by 2.23 mbpd to 1.9 mbpd.

The United Arab Emirates and Kuwait also posted steep declines of 1.48 mbpd and 1.380 mbpd, respectively.

Venezuela increased production by 75,000 bpd to 1.1 mbpd, Congo added 16,000 bpd to reach 307,000 bpd, and Libya gained 15,000 bpd to 1.3 mbpd. Algeria recorded a marginal drop of 2,000 bpd.

The report noted that totals for the entire OPEC group were not available due to independent rounding and incomplete data for some members. It also clarified that Saudi Arabia’s supply to the market in March stood at 7.76 mbpd, while its actual production was 6.97 mbpd. Nothing was recorded for Gabon and the crisis-ridden Iran.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

Dangote plans pan-African IPO for $20bn refinery

Published

on

The President of Dangote Industries Limited, Aliko Dangote, is planning a landmark cross-border public offering of his $20bn oil refinery, in a move that could reshape capital markets across Africa and deepen regional investor participation, a new report by Bloomberg revealed on Monday.

The proposed listing, which will see shares of the Dangote Petroleum Refinery and Petrochemicals floated on multiple African stock exchanges, is being positioned as the first pan-African initial public offering of its scale.

Details of the plan emerged following a high-level meeting in Lagos, which involved Dangote and the chief executives of several African bourses under the umbrella of the African Securities Exchanges Association.

Chief Executive Officer of the Nairobi Securities Exchange, Frank Mwiti, who attended the meeting, disclosed that discussions centred on structuring a cross-border listing framework that would allow investors across the continent to participate in the refinery’s ownership.

“The plan is to structure a pan-African IPO,” Mwiti said after the meeting, noting that the initiative would require coordination among exchanges to ease regulatory barriers and facilitate seamless trading across jurisdictions.

A spokesman for the Dangote Group confirmed that the meeting took place but declined to provide further details on the structure and timeline of the proposed offering.

The development comes months after Dangote unveiled plans to list about 10 per cent of the refinery on the Nigerian Exchange Group in 2026, a move widely seen as part of efforts to unlock value and broaden the company’s investor base.

To drive the offering, Dangote has appointed a consortium of financial advisers, including Stanbic IBTC Capital Limited, Vetiva Advisory Services Limited, and FirstCap Limited.

See also  FIRS, judiciary strengthen collaboration on emerging tax laws

Chief Executive Officer of FirstCap, Ukandu Ukandu, confirmed the appointments, stating that the advisers were already working on the transaction structure.

The report noted that multi-exchange listing could significantly deepen liquidity in African capital markets, while positioning Nigeria as a major hub for cross-border investments, especially as the country eyes a return to the FTSE Russell Frontier Markets Index.

They added that the offering could also provide much-needed capital to support Dangote’s aggressive expansion strategy.

Currently, the refinery, the largest single-train facility in the world, has a processing capacity of 650,000 barrels per day. However, Dangote plans to more than double this to 1.4 million barrels per day within the next three years, a scale that would rival global refining giants, including facilities owned by Indian billionaire Mukesh Ambani.

To fund this expansion, the company recently secured backing from the African Export-Import Bank, which underwrote $2.5bn out of a $4bn syndicated financing facility.

The refinery expansion forms part of a broader $40bn investment programme outlined by Dangote over the next five years, covering petrochemicals, fertiliser production, and energy infrastructure.

The pan-African IPO is also being driven by rising demand for refined petroleum products across the continent, as several African countries continue to face supply challenges exacerbated by global geopolitical tensions.

Since commencing operations, the Lagos-based refinery has begun exporting refined fuel to multiple African markets, helping to reduce reliance on imports from Europe and the Middle East.

Further discussions on the proposed listing were also held between Dangote and officials of the Nigerian Exchange Group, alongside representatives of member exchanges of the African Securities Exchanges Association, focusing on frameworks that would allow investors from different jurisdictions to seamlessly access the IPO.

See also  Business leaders reject proposed beverage tax hike

The deal could mark a turning point for Africa’s financial markets by fostering greater integration, improving capital mobilisation, and offering retail and institutional investors across the continent a rare opportunity to own a stake in one of Africa’s most strategic industrial assets.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Business

Electricity Power subsidy hits N418bn, losses exceed N300bn

Published

on

The Nigerian Electricity Regulatory Commission has disclosed that the Federal Government incurred a subsidy obligation of N418.79bn in the fourth quarter of 2025, even as inefficiencies across the electricity value chain led to losses exceeding N300bn during the period.

This was contained in the commission’s 2025 fourth-quarter report, which also highlighted declining remittances, high distribution losses, grid instability, and a marginal drop in available generation capacity.

According to the report, total invoices issued by generation companies for electricity produced in the quarter amounted to N804.93bn. However, due to non-cost-reflective tariffs, the government absorbed 52.30 per cent of the cost.

The commission stated, “It is important to note that due to the absence of cost-reflective tariffs across all DisCos, the government incurred a subsidy obligation of N418.79bn; this represents a N39.96bn (-8.71 per cent) reduction in FGN subsidy compared to 2025/Q3.”

The report added that the subsidy covered more than half of generation costs, leaving distribution companies to pay only N386.13bn. “The government subsidy accounted for 52.30 per cent of the total GenCo invoice, which is a 6.60pp decrease compared to 2025/Q3,” the commission noted.

Despite the intervention, the sector recorded significant commercial losses. While the total value of electricity supplied to distribution companies stood at N969.19bn, only N795.06bn was billed to customers.

“The naira value of the total energy offtake by all DisCos in 2025/Q4 was N969.19bn, and the total energy billed was N795.06bn, which translates to a billing efficiency of 82.03 per cent.

The billing efficiency of 82.03 per cent recorded during the quarter represents a decrease of 0.66pp compared to 2025/Q3 (82.69 per cent). At an aggregate level, DisCos cumulatively recorded billing losses of N174.12bn in 2025/Q4,” the report said.

See also  Nigerians lose millions in dashed Umrah dreams due to US-Iran war

In addition, high aggregate technical, commercial, and collection losses further weakened sector finances. “The weighted average ATC&C loss across all DisCos in 2025/Q4 was 34.9 per cent, translating to a cumulative revenue loss of N139.19bn across all DisCos,” the report noted.

Combined, the billing losses of N174.12bn and ATC&C revenue losses of N139.19bn indicate inefficiency-driven losses of over N300bn during the quarter. The report also showed that distribution companies received 7,991.22GWh of electricity but billed customers for only 6,614.57GWh, indicating persistent energy accounting inefficiencies.

“Although the total energy received by all DisCos in 2025/Q4 was 7,991.22GWh, the energy billed to end-use customers was only 6,614.57GWh,” it stated.

Collection performance also declined compared to the previous quarter. Market remittances to upstream participants also weakened. DisCos were required to remit N471.66bn but paid only N437.27bn, leaving an outstanding balance of N34.39bn.

This translates to a remittance performance of 92.71 per cent in 2025/Q4 compared to the 95.21 per cent recorded in 2025/Q3.

On operational performance, the commission said available generation capacity averaged 5,400.38 megawatts, representing a slight decline from the third quarter, with several plants recording reduced output.

Seventeen power plants recorded decreases in available generation capacities in 2025/Q4 relative to 2025/Q3, it said.

However, energy generation improved during the quarter. Average hourly generation increased to 4,452.71MWh/h, resulting in total generation of 9,831.58GWh. “The average hourly generation of the grid-connected power plants increased by 273.56MWh/h (+6.55 per cent),” the report stated.

Grid stability concerns also persisted. System frequency and voltage levels fell outside prescribed operating limits. “In 2025/Q4, the average lower daily (49.38Hz) and average upper daily (50.65Hz) system frequencies were outside the normal operating limits,” the commission said.

See also  FIRS, judiciary strengthen collaboration on emerging tax laws

The report stated that there was one incident of system disturbance on the national grid in 2025/Q4. A partial collapse of the grid occurred on December 29. The commission warned that the current subsidy regime exposes government finances to uncertainty.

“The current open-ended subsidy regime leaves the FGN exposed to indeterminate subsidy obligation,” it stated, citing generation cost variations and supply mix as key drivers.

The report added that the Q4 subsidy declined partly due to increased energy allocation to premium customers on Band A feeders. “The key driver of this reduction is the increase in energy allocated to Band A customers from 40 per cent to 45 per cent,” the commission said.

punch.ng

FOLLOW US ON:

FACEBOOK

TWITTER

PINTEREST

TIKTOK

YOUTUBE

LINKEDIN

Continue Reading

Trending