A consortium led by Ardova Plc and including Diadem Energy has agreed to acquire Powergas Global Investments Nigeria Limited and Powergas Ebedei Limited, collectively known as Powergas, in a transaction expected to close by the end of 2026.

The deal, announced on Friday by A.P. Moller Capital, will see the Danish investor exit its stake in one of Africa’s largest compressed natural gas producers and virtual pipeline distributors.

Powergas, founded in 2013 by the Clean Energy Group, pioneered the “virtual pipeline” model—compressing natural gas and transporting it by road to industrial, commercial and power customers beyond the reach of Nigeria’s fixed pipeline grid.

Its flagship Ebedei flare gas monetisation project in Delta State, developed with A.P. Moller Capital’s backing since 2019, converts otherwise flared gas into usable energy and has helped cut emissions while supplying firms that would otherwise rely on diesel generators.

The company now operates four mother stations—in Ikorodu (Lagos), Ogbele (Rivers), Ebedei (Delta) and Ore (Ondo)—and a fleet of more than 250 tube skids, having delivered over 600 million standard cubic metres of CNG as at December 2025.

For Ardova, the acquisition adds a strategic gas platform to its existing downstream portfolio of petroleum products, LPG, aviation fuel, lubricants, shipping and logistics.

The Lagos-based integrated energy company, which traces its roots to BP Nigeria in 1964, plans to deploy CNG infrastructure across its nationwide retail network, targeting 100 CNG refuelling sites within 24 months.

The expansion aligns with the federal government’s Decade of Gas initiative, launched in 2021 to transform Nigeria into a gas-powered economy by 2030, and President Bola Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles, which seeks to lower transport costs and emissions by promoting auto-gas adoption.

“Nigeria’s next era of energy development will be built on gas, and it will be built at scale. “Powergas has built the compression backbone required to take natural gas beyond the conventional pipeline grid. Ardova brings a national distribution network, deep customer relationships, and the ability to invest for the long term.

“Together, we intend to connect Nigeria’s abundant gas resources to industry, power and transportation, supporting President Bola Ahmed Tinubu’s Presidential Initiative on Compressed Natural Gas and Electric Vehicles and the federal government’s Decade of Gas programme.

“Our ambition is to deliver more affordable, lower-emission energy and lower transportation costs for Nigerians, while building a gas platform with relevance far beyond Nigeria,” explained the Executive Chairman of Ardova Plc, Dr AbdulWasiu Sowami.

The Managing Director of Ardova Plc, Dr Abiola Babatunde-Ojo, noted that the deal would enable the firm to harness the opportunities in the gas industry.

“This combination gives us the infrastructure, reach and capabilities to turn the opportunity in gas into something tangible for customers across Nigeria. Our focus now is execution: expanding compression capacity, bringing CNG into our retail network and connecting more industries and fleets to a reliable domestic energy source. We are building a platform that will serve customers at scale today and grow with Nigeria’s energy needs for decades to come,” he asserted.

“Powergas began in 2013 with the Clean Energy Group’s vision of taking gas beyond the pipeline, and A.P. Moller Capital’s partnership helped us scale it. We are deeply grateful to both. Ardova’s national reach and our compression backbone are a natural fit – together, we can expand into new markets and geographies and play a leading role in delivering Nigeria’s Auto-Gas vision. We are very excited about the next chapter,” Vice-Chairman of Powergas, Pulak Sen, added.

According to a Partner at A.P. Moller Capital, Sam Senbanjo, since 2019, PEL has progressed from concept to a fully operational compressed-natural-gas business.

“Working alongside our partners, management and employees, we supported the business through development, construction, commissioning and scale-up, helping customers access domestic gas beyond the reach of the pipeline network. We are proud of what has been achieved and believe Ardova and Diadem are well placed to support Powergas in its next phase of growth,” he stated.

“Having worked closely with Powergas as its virtual-pipeline logistics partner, we have seen first-hand the transformative potential of taking natural gas beyond the conventional pipeline network. For Diadem Group, this is the continuation of a journey that began on the ground with Powergas, and a real opportunity to contribute to Nigeria’s energy future,” Chairman of Diadem Group, the parent company of Diadem Energy, George Eluwa, highlighted.

The enlarged platform is expected to position Ardova as a leading domestic gas infrastructure and monetisation partner for upstream producers, with plans to expand compression capacity across viable gas-producing corridors and extend the business into wider West African markets over time.

The deal’s completion is subject to customary closing conditions, including regulatory and third-party approvals.

Source: punchng.com

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The Federal Government has approved new guidelines for the debarment of contractors, consultants and service providers, outlining six grounds that could lead to their exclusion from Federal Government procurement for between three and five years.

The grounds include offering bribes or other benefits to influence procurement decisions, conviction for fraud, wilful failure to perform contractual obligations, a history of unsatisfactory performance, falsification of documents and debarment by a multilateral organisation.

The directive was contained in a circular titled “Implementation of the National Guideline on Debarment of Contractors,” signed by the Secretary to the Government of the Federation, George Akume.

The circular was addressed to the Chief of Staff to the President, Deputy Chief of Staff to the President, Head of the Civil Service of the Federation, Principal Secretary to the President, ministers and ministers of state, National Security Adviser, Economic Adviser to the President, special advisers and senior special assistants.

Others addressed included service chiefs and the Inspector-General of Police; the Governor of the Central Bank of Nigeria; chairmen of the Federal Civil Service Commission, Police Service Commission, Code of Conduct Bureau, Code of Conduct Tribunal, Federal Character Commission, Revenue Mobilisation Allocation and Fiscal Commission, Federal Inland Revenue Service and Independent National Electoral Commission.

The circular was also sent to the chairmen of the National Population Commission, Independent Corrupt Practices and Other Related Offences Commission, Economic and Financial Crimes Commission and National Drug Law Enforcement Agency; all permanent secretaries and heads of extra-ministerial departments; Clerk of the National Assembly; Chief Registrar of the Supreme Court; Accountant-General of the Federation; Auditor-General for the Federation; and directors-general and chief executives of parastatals, agencies and government-owned companies.

Akume said the guideline was introduced “in order to promote integrity, transparency, accountability in public procurement and to ensure value for money in public expenditure and to protect government from bad and non-performing contractors.”

The circular stated that the guideline establishes “the grounds and procedures for excluding contractors, suppliers and service providers from participating in Federal Government procurement” where they are found to have violated the Public Procurement Act, 2007, or engaged in wrongdoing relating to contract delivery.

Under the guideline, a contractor, consultant, or service provider may face debarment where there is evidence that the firm or individual gave or promised money, gifts, or any tangible item to a current or former employee of a procuring entity or the Bureau of Public Procurement in an attempt to influence a procurement action or decision.

The government also listed offering or giving employment or another benefit that can be quantified in monetary terms to a current or former employee of a procuring entity or the BPP as a ground where it is intended to influence a procurement activity.

Another ground is conviction for fraud or any other offence connected with obtaining, attempting to obtain or performing a public contract or subcontract.

The guideline further targets contractors that breach government contracts through “willful failure to perform in accordance with the terms of a contract” or those with “a history of failure to perform or of unsatisfactory performance of a contract.”

Falsification of documents is also expressly listed as a ground for debarment. In addition, the government said a contractor already debarred by a multilateral organisation “may be considered for debarment by the government.”

Once a contractor is debarred, Ministries, Departments and Agencies are prohibited from soliciting offers from the contractor, awarding contracts to it or consenting to subcontracts involving the contractor. The circular also provides that a debarred contractor “shall not conduct business with the government as an agent or representative of any other contractor, consultant or service provider.”

However, an existing government contract or subcontract may continue despite the debarment where a government agency determines there are other good reasons for doing so. The sanction will also apply to partners in a joint venture agreement.

The guideline stipulates that the Debarment Committee may impose a sanction “for a period of not less than three years and not exceeding five years.” The guidelines set out a process requiring the BPP to investigate and notify contractors before a final debarment decision is made.

The BPP may commence proceedings where, during its review, surveillance or audit, it has cause to believe that a contractor has contravened the Public Procurement Act or regulations made under it.

A procuring entity can also submit a debarment recommendation after conducting adequate findings, provided the recommendation is based on evidence approved by its Accounting Officer.

The BPP is required to acknowledge a debarment request within seven working days, while the Secretary of the Debarment Committee must review the information within 10 working days.

Where a case capable of leading to debarment is established, the BPP is to issue a notice to the affected contractor within five working days. The notice must contain the specific allegations and grounds for the proposed debarment. The contractor, consultant or service provider will then have 10 working days to respond. The BPP may grant an extension of not more than five working days upon request.

The circular provides that the respondent may submit a written response personally or through counsel, together with additional information in support of its defence. It adds that the response must be accompanied by a verifying affidavit “attesting that the information provided is truthful, after exercising due diligence in reviewing the matter.”

Where the notice cannot be delivered physically or electronically, the intention to debar may be published in two national newspapers, the Tenders Journal and the BPP’s website, for at least 10 working days.

If no response is received within 10 working days after publication, the respondent may be considered to have been served, allowing the Debarment Committee to proceed on the basis of the available material.

Upon receiving a response, the committee is required to consider it within 15 working days and arrive at a decision on the merits. Where the committee decides to impose debarment, the BPP must issue the final notice within five working days of receiving the committee’s decision.

The circular states that the final notice must contain “the decision to debar, grounds for the debarment, period of debarment and the implications of the debarment.” The name of the debarred contractor will then be entered into the BPP database and published on the Bureau’s website, the Federal Tenders Journal and other platforms.

The new guidelines build on Nigeria’s existing public procurement framework established by the Public Procurement Act 2007, which provides the legal framework for public procurement and establishes the BPP as the regulatory body responsible for monitoring and regulating procurement processes.

The Act provides for measures to promote competition, transparency and value for money in public procurement and contains offences and sanctions relating to procurement misconduct, including fraud, collusion and other breaches.

The BPP has also developed procurement systems and platforms intended to improve transparency and public access to information on Federal Government contracting and procurement processes.

The new guideline provides a specific administrative framework for acting against contractors, including the grounds for debarment, notification, opportunity to respond, committee review, publication of sanctioned contractors and possible reinstatement after the sanction period.

The circular directs all Accounting Officers to bring the contents of the guideline to the attention of their Tenders Boards, Procurement Planning Committees, Procurement Departments and all officers involved in public procurement.

It concluded, “The implementation of this circular is effective immediately, and strict compliance is advised.”

Source: punchng.com

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The Federal Government has opened discussions with the World Bank for three new loans totalling $1.5bn, even as Nigeria’s public debt climbed to a record N166.79tn at the end of June 2026.

Documents obtained from the World Bank show that the proposed financing comprises three separate $500m facilities for climate resilience, social protection and early childhood development.

The most immediate is a proposed $500m additional financing for the Agro-Climatic Resilience in Semi-Arid Landscapes project, known as ACReSAL. The World Bank has fixed October 29, 2026, as the estimated date for consideration by its board. The borrower is the Federal Republic of Nigeria, while the Federal Ministry of Environment is the implementing agency.

The financing would raise the size of ACReSAL from its previously approved $700m to $1.2bn, entirely financed through the International Development Association, the World Bank’s concessional financing arm.

The document said, “The Government of Nigeria has requested AF of $500m to scale up demonstrated project results and strengthen the institutional, operational and financing arrangements needed to sustain integrated landscape management.”

The additional financing is expected to support landscape restoration, watershed rehabilitation, erosion and flood management, irrigation and drainage, water harvesting and storage, reforestation and other climate-resilient interventions.

Of the additional $500m, $310m is proposed for dryland management, $165m for community climate resilience and $25m for institutional strengthening and project management.

ACReSAL currently operates across 19 northern states and the Federal Capital Territory and is targeted at land degradation, water insecurity, climate vulnerability and declining agricultural productivity.

The World Bank said desertification and land degradation affected an estimated 43 per cent of Nigeria’s land area, while failure to address climate change could reduce gross domestic product by about 2.6 per cent annually by 2030 and as much as 6.7 per cent by 2050.

The second proposed loan is another $500m IDA credit for the Household Prosperity and Empowerment-Social Protection Project.

Unlike the ACReSAL facility, the HOPE-SP project is at an earlier stage of preparation. Its technical design review is expected on October 30, 2026, while the World Bank has tentatively fixed March 16, 2027, as its approval date. The Federal Ministry of Finance is listed as the borrower, while the Federal Ministry of Humanitarian Affairs and Poverty Reduction will implement the programme.

The project has an estimated cost of $500m, comprising a $420m results-based programme and an $80m investment project financing component, with the entire financing expected from IDA.

It is designed to establish regular social assistance for poor and vulnerable households, while gradually shifting financing responsibility towards federal and state budgets.

The World Bank document said the programme would establish “a sustainable social assistance to poor and vulnerable households, financed increasingly from federal and state budgets and delivered through strengthened state and local government systems.”

The proposed programme would finance targeted unconditional and conditional cash transfers, modernise the social registry, integrate the National Identification Number into the social protection information system and strengthen implementation at federal, state and local government levels.

The lender said Nigeria spent only 0.14 per cent of GDP on social safety-net programmes in 2021, compared with a global average of 1.5 per cent and 1.2 per cent among lower-middle-income countries.

The bank also painted a grim picture of household welfare, estimating that the proportion of Nigerians living in poverty had increased from 40 per cent in 2019 to 56 per cent in 2023 and could reach 62.5 per cent in 2026. It attributed the deterioration to several factors, including the pandemic, inflation, natural disasters and conflict, while noting that fuel subsidy removal and exchange-rate reforms worsened living costs in the short term.

The third proposed $500m facility is for the Nigeria Early Childhood Development programme, with an estimated approval date of March 15, 2027, a day before the proposed HOPE-SP approval. Its technical design review is also scheduled for October 30, 2026.

The Federal Ministry of Finance is the borrower, while the Federal Ministry of Budget and Economic Planning is expected to implement the programme.

The project would cover all 36 states and the FCT and seek to improve access to an integrated package of health, nutrition, early learning, childcare, water and sanitation, and other services for children aged zero to five.

It would be financed through $500m IDA credit, consisting of a $400m programme-for-results component and $100m investment project financing component.

The World Bank said the intervention had become necessary because “40 percent of children under five are stunted, fewer than half are developmentally on track, 36 percent of children aged 36 to 59 months attend organised early learning,” with poor rural households carrying much of the burden.

Debt jumps

The proposed borrowing comes as fresh figures from the Debt Management Office show that Nigeria’s total public debt rose by N14.39tn within one year, from N152.40tn in June 2025 to N166.79tn at the end of June 2026.

That represented an increase of 9.44 per cent year-on-year. Measured in dollars, however, the expansion was considerably larger. Public debt jumped by $21.27bn, or 21.35 per cent, from $99.66bn to $120.93bn over the same period.

The divergence reflects, among other factors, the stronger naira used in valuing the June 2026 external debt. The DMO applied an official exchange rate of N1,379.1842/$ in June 2026 compared with N1,529.2105/$ a year earlier. Consequently, dollar-denominated debt rose much faster than its naira equivalent.

On a quarterly basis, the debt stock increased by N7.44tn, or 4.67 per cent, from N159.35tn in March 2026 to N166.79tn in June.

In dollar terms, it rose by $5.98bn, or 5.20 per cent, from $114.95bn at the end of March. The June figures show that domestic liabilities remained the larger component of the debt portfolio.

Domestic debt stood at N91.59tn, representing 54.91 per cent of total public debt, while external debt amounted to N75.20tn, or 45.09 per cent. Domestic debt increased by N11.04tn, or 13.70 per cent, from N80.55tn in June 2025. In dollar terms, it climbed 26.07 per cent from $52.67bn to $66.41bn.

Between March and June 2026 alone, domestic debt rose by N4.19tn, or 4.79 per cent, from N87.40tn.

External debt moved from $46.98bn in June 2025 to $54.52bn in June 2026, an increase of $7.54bn or 16.05 per cent. Its naira value, however, rose by only N3.35tn or 4.66 per cent, from N71.85tn to N75.20tn because of the exchange-rate effect.

Quarter-on-quarter, external debt increased by $2.62bn or 5.05 per cent from $51.90bn in March to $54.52bn in June. Its naira equivalent increased by N3.25tn or 4.51 per cent.

The Federal Government remained responsible for the overwhelming majority of the portfolio. Its domestic debt stood at N87tn in June, while states and the FCT owed N4.59tn domestically. Federal Government external liabilities were N65.77tn, compared with N9.42tn owed externally by states and the FCT.

Treasury bills

A closer examination of the Federal Government’s domestic liabilities shows that the growth was increasingly driven by Treasury bills and conventional naira bonds.

FGN domestic debt rose from N76.59tn in June 2025 to N87tn in June 2026, an increase of N10.41tn or 13.60 per cent. It also increased by N4.12tn or 4.97 per cent in the second quarter alone.

FGN bonds remained the dominant instrument at N64.84tn, accounting for 74.53 per cent of Federal Government domestic debt. The figure included N41.47tn in conventional naira bonds, N22.11tn in securitised Ways and Means advances and N1.27tn in domestic dollar bonds.

But Treasury bills recorded the sharpest absolute expansion. Outstanding Nigerian Treasury Bills jumped from N12.76tn in June 2025 to N19.48tn in June 2026, an increase of N6.72tn or 52.64 per cent within one year. Their share of Federal Government domestic debt consequently rose from 16.67 per cent to 22.39 per cent.

The increase was also concentrated in the second quarter. Treasury bills rose by N2.92tn, or 17.60 per cent, from N16.57tn in March to N19.48tn in June. Conventional FGN naira bonds increased by N4.94tn or 13.54 per cent year-on-year to N41.47tn and by N2tn or 5.08 per cent between March and June.

In contrast, the securitised Ways and Means balance declined from N22.72tn in March to N22.11tn in June, a reduction of N613.34bn or 2.70 per cent. Promissory notes also fell substantially, dropping from N1.73tn in June 2025 to N1.22tn in June 2026, a 29.81 per cent reduction.

FGN Savings Bonds, by contrast, rose 33.78 per cent from N91.53bn to N122.45bn, although they still represented just 0.14 per cent of domestic Federal Government debt.

Loans hit $20.73bn

The DMO figures further show why the proposed $1.5bn facilities are significant for Nigeria’s creditor profile. Nigeria’s outstanding debt to the World Bank Group reached $20.73bn at the end of June 2026, comprising $19.12bn owed to IDA and $1.61bn to the International Bank for Reconstruction and Development.

The combined exposure increased by $1.34bn or 6.93 per cent from $19.39bn in June 2025, when IDA debt stood at $18.04bn and IBRD debt at $1.35bn.

The rise accelerated during the second quarter of 2026. World Bank exposure increased by $907.09m, or 4.58 per cent, from $19.82bn in March to $20.73bn in June. IDA alone increased by $733.08m during the quarter, while IBRD exposure rose by $174.01m.

At $20.73bn, the World Bank Group accounted for about 38 per cent of Nigeria’s entire $54.52bn external debt stock at the end of June. IDA was by far Nigeria’s single largest identified external creditor, with its $19.12bn exposure alone equivalent to roughly 35 per cent of the country’s external debt.

Nigeria’s overall multilateral debt stood at $24.76bn, or 45.42 per cent of external debt. This means World Bank obligations accounted for roughly 84 per cent of the country’s multilateral debt.

The remainder included $2.17bn owed to the African Development Bank, $1.01bn to the African Development Fund, $406.41m to the Islamic Development Bank and $314.98m to the International Fund for Agricultural Development, among others.

Commercial debt was almost as large as multilateral borrowing, reaching $23.16bn and representing 42.47 per cent of external liabilities. Eurobonds alone accounted for $18.55bn.

Other commercial obligations included $1.87bn owed to First Abu Dhabi Bank, $835.78m to Afreximbank and a $1.5bn First Abu Dhabi Bank total return swap.

Bilateral debt was considerably smaller at $6.61bn, representing 12.12 per cent of the external portfolio. China remained the largest bilateral source, with $4.91bn owed to the Export-Import Bank of China and another $573.53m to the China Development Bank. France accounted for $906.23m.

The creditor mix has shifted over the past year. In June 2025, multilateral institutions accounted for 49.36 per cent of Nigeria’s external debt, compared with 45.42 per cent in June 2026, despite an increase in their nominal exposure.

This reflects faster growth elsewhere in the external portfolio, particularly commercial borrowing. Eurobond liabilities increased from $17.32bn in June 2025 to $18.55bn in June 2026, while Nigeria also accumulated sizeable syndicated and other commercial obligations during the period.

The PUNCH earlier reported that former Vice-President Atiku Abubakar demanded a full reconciliation of Nigeria’s public debt, including new borrowings, Treasury Bills and controversial charges contained in the latest external debt-service records, as the country’s debt stock climbed to N166.79tn.

Atiku also demanded an apology from the President Bola Tinubu administration over the hardship Nigerians have experienced since the removal of the petrol subsidy and other economic reforms introduced in 2023.

The demands were contained in a statement on Saturday by Phrank Shaibu, Director of Strategic Communications of the African Democratic Congress Presidential Campaign Council.

“A government that says more money is coming in must explain why it keeps borrowing and why the people paying for its policies cannot see the promised gains,” Atiku said.

He urged the government to “identify the old debt newly recorded, the foreign debt whose naira value rose with the exchange rate, and every new loan contracted since he assumed office.”

Atiku also questioned the cost of servicing the country’s debt, arguing that rising obligations were limiting resources available for public services and development.

Reacting to the rising World Bank commitments to Nigeria, Lagos-based economist Adewale Abimbola said loans from multilateral institutions such as the World Bank are largely concessionary, with interest rates typically below market levels and longer repayment tenors.

He noted that the critical question is not whether Nigeria should be borrowing, but whether the loans are structured and deployed effectively. “If it’s concessionary and tied to viable projects with medium-term revenue prospects, I don’t think it’s a bad idea,” Abimbola explained. “Borrowing isn’t bad; what matters is utilisation.”

He stressed that the economic impact of such loans depends on how well they are channelled into projects that can generate sustainable growth, strengthen revenue, and improve public services over time.

Source: punchng.com

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