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Lawmakers oppose dollar billing for local petrol sales

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The House of Representatives has commenced moves to address mounting concerns in Nigeria’s downstream petroleum sector, opposing the continued imposition of US dollar-denominated charges on locally refined petroleum products and announcing plans to investigate alleged irregularities in the allocation of fuel import licences.

The House Committee on Petroleum Resources (Downstream) disclosed this on Tuesday during an interactive session with key industry stakeholders, including the Independent Petroleum Marketers Association of Nigeria, the Depot and Petroleum Products Marketers Association of Nigeria, and the Major Energies Marketers Association of Nigeria.

The engagement forms part of the committee’s ongoing consultations on proposed amendments to the Petroleum Industry Act and broader reforms aimed at strengthening domestic refining, guaranteeing national energy security and ensuring a competitive downstream petroleum market.

The Chairman of the committee, Ikenga Ugochinyere, said the lawmakers would invite the Nigerian Midstream and Downstream Petroleum Regulatory Authority, the Nigerian Upstream Petroleum Regulatory Commission, the Nigerian Ports Authority, the Central Bank of Nigeria, refiners and other relevant agencies to respond to issues raised by industry operators.

“We’ll be meeting with the NMDPRA, NUPRC, the refiners—both modular refinery owners and the large refinery operators—as well as the NPA, the CBN and other relevant agencies on the issues that have been raised. These will form part of our downstream reforms, including proposed amendments to the Petroleum Industry Act and legislative motions to correct identified gaps,” Ugochinyere said.

The lawmaker expressed concern over the continued charging of port fees in U.S. dollars for petroleum products refined and transported within Nigeria, describing the practice as detrimental to the economy.

“We have taken special note of the issue of dollar-denominated charges by the Nigerian Ports Authority. It is not good for the economy that, at a time like this, people involved in domestic downstream activities are still being charged in dollars. That ultimately affects the pump price of Premium Motor Spirit,” he said.

Ugochinyere also pledged to investigate allegations that fuel import licences for the first three quarters of 2026 were issued to the same group of marketers.

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“We have also taken note of what you said about the lopsidedness in the issuance of import licences, where allocations for the first, second and third quarters went to the same set of operators. We will raise these questions when the NMDPRA appears before the committee to explain the criteria used in issuing those licences,” he added.

The committee chairman stressed the need to strike a balance between protecting Nigeria’s expanding domestic refining capacity and preserving the investments of marketers who have built storage and distribution infrastructure over several decades.

“How do we encourage and protect owners of domestic refineries while also protecting the investments of marketers? We cannot continue importing the same volume of petroleum products as before, given that more refineries are coming on stream. At the same time, we must guarantee national energy security in case local refineries experience disruptions.

“We need a balanced framework that supports domestic refining, preserves healthy competition and ensures the country always has a reliable fuel supply. That is the direction this committee is pursuing,” he said.

Presenting DAPPMAN’s memorandum, the association’s Executive Secretary, Mr Olufemi Adewole, urged lawmakers to address what he described as structural distortions affecting petroleum marketers and depot operators.

According to him, at least 72 of Nigeria’s 154 licensed petroleum depots recorded little or no trading activity over the past year because of what he described as an uneven operating environment.

“From the records of the NMDPRA, not fewer than 72 of the 154 depots nationwide had no regular or consistent trading activity in the last one year. They are merely paying salaries without engaging in meaningful business. This is largely due to an uneven playing field, persistent trading losses and the inability to access alternative sources of supply,” he said.

While welcoming the commencement of operations at the Dangote Refinery, Adewole warned against what he described as a near-monopoly in the supply of PMS.

“Our experience has been one of mixed feelings, bordering on an almost total monopoly in the supply of PMS by the mega refinery. Although the Petroleum Industry Act provides for a fully deregulated market where prices are determined by market forces, that has not been our experience,” he said.

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The association also accused the NMDPRA of allocating import permits repeatedly to the same group of marketers. “The same set of marketers received import allocations in the first, second and third quarters of 2026, as though other qualified operators do not exist. This is unacceptable, and we urge this committee to ensure greater transparency and fairness in future allocations,” Adewole said.

DAPPMAN argued that retaining the option of fuel imports remains necessary to prevent shortages during refinery maintenance, operational disruptions or logistics challenges.

“In order to avoid the return of fuel queues, the import option provided under the Petroleum Industry Act must remain available as a regulated contingency mechanism whenever domestic supply is insufficient,” he said.

The association also decried what it described as duplicated port charges and the continued billing of domestic petroleum transactions in foreign currency.

“Marketers are invoiced at the loading point and again at the discharge port for products moved entirely within Nigeria. More critically, certain charges are still imposed in US dollars despite the purely domestic nature of these transactions. This practice persists despite a presidential directive suspending foreign currency-denominated billing for local operations. We urge the committee to ensure compliance,” Adewole added.

DAPPMAN further called for accelerated dredging of major waterways, rehabilitation of pipelines and depots, improved rail transportation for petroleum products and the creation of a national downstream logistics master plan.

IPMAN National President, Abubakar Shettima, commended the Federal Government for encouraging private investment in refining but said marketers continue to grapple with high financing costs, multiple taxation, foreign exchange volatility, inadequate storage infrastructure and limited access to refinery products.

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He called for policies that would support domestic refining while preserving competition. “We support strengthening domestic refining, but we also need equitable access to locally refined petroleum products, affordable financing and reduced regulatory costs that ultimately increase pump prices,” he said.

Shettima proposed the establishment of a specialised Petroleum Bank to provide single-digit interest loans to operators. “Today, marketers borrow from commercial banks at interest rates of up to 32 per cent. Those costs are eventually passed on to consumers. We are proposing a Petroleum Bank that will provide single-digit interest loans, similar to what exists in the agriculture and industrial sectors,” he said.

He also urged multinational oil companies involved in fuel importation to invest in local refining. “Before now, we depended almost entirely on imported petroleum products. Today, Nigeria is exporting refined products. Multinational companies should invest in domestic refineries to complement the existing capacity rather than relying solely on imports,” he added.

On the future of Nigeria’s state-owned refineries, Shettima suggested that independent marketers be allowed to participate in their management.

“If independent marketers are allowed to participate in operating the government refineries, we believe we can contribute significantly to their revival. We have done it before. Independent marketers invested in what is today NIPCO, which has become one of Nigeria’s leading petroleum marketing companies,” he said.

The committee’s consultations come as Nigeria seeks to consolidate gains from recent reforms in the downstream petroleum sector following the implementation of the Petroleum Industry Act and the expansion of domestic refining capacity.

Lawmakers are expected to engage regulators, refiners, NNPC Limited and other stakeholders before proposing legislative measures aimed at creating a more competitive, transparent and sustainable petroleum market while safeguarding the country’s long-term energy security.

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DisCos earn N603bn as power offtake drops

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Electricity distribution companies collected N603.64bn from customers in the second quarter of 2026, despite a decline in the volume of electricity they received from the power market.

The figure was contained in the Nigerian Electricity Regulatory Commission’s second-quarter 2026 report, which showed that the average energy offtake by the DisCos at their trading points fell to 3,197.03 megawatt-hours per hour in the quarter.

The Q2 figure represented a 112.45MWh/h, or 3.40 per cent, decline from the 3,309.48MWh/h average recorded in the first quarter. Despite the decline in offtake, the DisCos recorded an overall offtake performance of 94.07 per cent during the quarter, against available partially contracted capacity of 3,398.41MWh/h.

According to the report, the DisCos received a total of 6,982.32 gigawatt-hours of electricity during the quarter but billed customers for only 5,812.31GWh. It stated, “This translates to an overall energy accounting efficiency of 83.24 per cent and represents a 0.24pp decrease compared to 2026/Q1 (83.48 per cent).”

The report further revealed that the naira value of electricity off-taken by the DisCos stood at N946.57bn, while the total value of energy billed to customers was N744.67bn.

This translated to a billing efficiency of 78.67 per cent, representing a decline of 0.57 percentage points from the 79.24 per cent recorded in the first quarter. At the collection stage, the DisCos recovered N603.64bn from the N744.67bn billed to customers, translating to a collection efficiency of 81.06 per cent.

The report said this represented an improvement of 2.11 percentage points from the 78.95 per cent recorded in Q1. However, the difference between the amount billed and the amount collected stood at N141.03bn during the quarter.

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The report also disclosed that the weighted average Aggregate Technical, Commercial and Collection losses across the 11 DisCos stood at 36.23 per cent in Q2.

It stated, “The ATC&C loss of 36.23 per cent is 19.31pp higher than the 2026 MYTO target (16.92 per cent) and translates to a cumulative revenue loss of N129.07 billion across all DisCos.”

The 36.23 per cent loss, however, represented a 1.21 percentage-point improvement from the 37.44 per cent recorded in Q1.

The report noted that all the DisCos failed to meet their ATC&C targets during the quarter, with “Kaduna DisCo recording the worst underperformance relative to the target (Actual – 67.70 per cent vs target – 18.18 per cent),” it stated.

On market obligations, the report said the cumulative upstream invoice payable by the DisCos stood at N410.38bn in Q2.

The amount comprised N326.46bn for generation costs from the Nigerian Bulk Electricity Trading Company and N83.92bn for transmission and administrative services provided by the market operator.

The DisCos collectively remitted N385.44bn, comprising N306.62bn to NBET and N78.82bn to the market operator, leaving an outstanding balance of N24.94bn. This represented a market remittance performance of 93.92 per cent, slightly lower than the 94.08 per cent recorded in Q1.

The report added that the Federal Government had taken responsibility for about 50 per cent, or N321.26bn, of the total generation costs through subsidies arising from the freezing of end-use customer tariffs at the rates applicable in July 2024.

Meanwhile, three international bilateral customers purchasing electricity from grid-connected generating companies paid $8.67m against an $18.84m invoice issued by the market operator during the quarter.

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This represented a remittance rate of 46.02 per cent. Domestic bilateral customers, on the other hand, paid N6.91bn against an invoice of N7.55bn, representing a remittance rate of 91.54 per cent.

Source: punchng.com

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Personal loans rise to N2tn as Nigerians borrow more

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Personal loans obtained by Nigerians rose to an estimated N2.06tn in May 2026, as consumer credit continued to expand amid persistent cost pressures and weak consumer spending, according to the latest Economic Report of the Central Bank of Nigeria.

The figure, calculated from data contained in the CBN’s May 2026 Economic Report, represents about 64.78 per cent of the N3.18tn total consumer credit outstanding during the month. The report covers developments in the real, fiscal, financial and external sectors of the economy.

The apex bank said consumer credit increased by 1.60 per cent from N3.13tn in April to N3.18tn in May, indicating that Nigerians borrowed an additional N50bn within one month.

It said, “Consumer credit outstanding increased by 1.60 per cent to N3.18tn from N3.13tn in the preceding month, driven by growth in personal and retail loans, which rose by 1.98 and 0.90 per cent, respectively.”

The CBN added, “Personal loans remained the dominant component of consumer credit, accounting for 64.78 per cent, while retail loans constituted 35.22 per cent.”

Based on the proportions reported by the apex bank, personal loans stood at approximately N2.06tn at the end of May, while retail loans amounted to about N1.12tn.

The 1.98 per cent month-on-month increase in personal loans suggests that the balance rose by roughly N40bn during the period. Retail loans, which include credit tied more directly to the purchase of goods and services, recorded a slower increase of 0.90 per cent.

The figures show that personal borrowing remained the main driver of Nigeria’s consumer-credit market, accounting for nearly two-thirds of outstanding credit.

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The increase came against a challenging operating environment for households and businesses. The CBN reported that economic activity remained weak in May, with its composite Purchasing Managers’ Index at 49.60 points, slightly higher than 49.40 points in April but still below the 50-point threshold separating expansion from contraction.

According to the bank, the contraction reflected subdued demand, declining new orders and elevated production costs. It also identified weak consumer spending and higher energy-related costs as pressures on the industry and services sectors.

Inflation also remained elevated during the period. Headline inflation increased to 15.93 per cent in May from 15.69 per cent in April, which the CBN attributed to persistent cost pressures and higher energy prices. However, month-on-month inflation slowed to 1.75 per cent from 2.13 per cent.

The combination of rising consumer credit and weak consumer spending suggests that households were increasingly accessing credit at a time when living and operating costs remained under pressure.

A recent report Enhancing Financial Inclusion & Advancement noted that four in every 10 Nigerians borrowing from formal financial institutions now take loans mainly for consumption and coping needs, as rising financial pressures increasingly push credit away from productive activities.

The 2026 Access to Financial Services in Nigeria Survey revealed that 40.8 per cent of formal borrowers used loans for coping and consumption, up sharply from 31.7 per cent in 2023.

The 9.1 percentage-point increase made coping and consumption the largest purpose of formal credit, overtaking productive enterprise borrowing, which fell from 40.2 per cent to 34.3 per cent during the same period.

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Borrowing for household assets also declined from 25.2 per cent to 23.4 per cent. The report warned, “Coping/consumption purposes rose from 31.7 per cent to 40.8 per cent; productive purpose fell from 40.2 per cent to 34.3 per cent. We need to ensure that credit builds productive capacity and does not produce distress.”

Formal credit use increased from six per cent of adults in 2023 to 10 per cent in 2026, with about 11.9 million Nigerians borrowing from regulated providers. When informal sources were included, 36 per cent of adults had access to some form of credit.

Credit use among informally employed Nigerians tripled from five per cent to 15 per cent, while borrowing among people aged 18 to 35 rose from four per cent to 10 per cent. Business owners recorded an increase from four per cent to 10 per cent, while farmers rose from two per cent to six per cent.

However, the report found significant distress among borrowers. About 45.8 per cent of formal-credit users reported some or serious repayment stress, while 83.8 per cent experienced ongoing financial stress.

Source: punchng.com

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NAFDAC seizes N300m banned drinks in Lagos

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The National Agency for Food and Drug Administration and Control has seized alcoholic beverages worth an estimated N300m packaged in sachets and PET bottles below 200ml during enforcement operations in Lagos State.

NAFDAC disclosed this in a statement shared on its Facebook page on Sunday, adding that some distributors and retailers involved in the sale of the prohibited products were arrested.

The agency said the enforcement operations were carried out at Ile-Epo Market, Ojuwoye Market in Mushin and Oke-Arin Market on Lagos Island.

“Officials evacuated several cartons of alcoholic beverages packaged in sachets and PET bottles below 200ml from these locations.

“Distributors and retailers were arrested during operations at Ile-Epo Market, while raids were also conducted at Ojuwoye Market, Mushin, and Oke-Arin Market, Lagos Island,” the statement said.

NAFDAC said investigations revealed that some distributors and retailers were hoarding the prohibited products amid increased demand and rising prices.

The agency said the enforcement was part of efforts to ensure compliance with the ban on the sale and distribution of alcoholic beverages packaged in sachets and PET bottles below 200ml.

It warned distributors, retailers and other operators against selling, distributing or hoarding the prohibited products.

“NAFDAC emphasises that the ban remains in force and warns distributors, retailers and other operators against the sale, distribution or hoarding of the prohibited products.

“The value of the seized products is estimated at N300m,” it stated.

PUNCH Metro reported on August 25 that NAFDAC ordered manufacturers of banned alcoholic beverages packaged in sachets and polyethylene terephthalate bottles below 200ml to recall the products nationwide or risk closure of their facilities.

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NAFDAC had also vowed to fully enforce the Federal Government-approved prohibition of alcoholic beverages packaged in sachets and PET or plastic bottles below 200ml, warning that the ban was irrevocable.

The agency had stated that the years of grace given to manufacturers by the Federal Government to stop producing the products had expired.

Source: punchng.com

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