Business

FG to save $7.9bn annually from sale of crude oil to Dangote, others

The Federal Government is hoping to save about $7.92 billion annually from the sale of crude oil to the nation’s local refineries in naira and thus reduce the pressure on foreign exchange.

This followed the approval on Monday by the Federal Executive Council (FEC) for trade among local refineries to be denominated in naira with immediate effect

The Chairman of the Federal Inland Revenue Service (FIRS), Zach Adedeji, disclosed this to correspondents after the meeting of the council presided over by President Bola Tinubu on Monday, saying that about $660 million is spent weekly on fuel importation, amounting to about $7.92 billion every year.

He said that the denomination of transactions will stabilise the pump price and make economic predictability reliable.

According to him, it is an innovation geared to solve the country’s problem.

He also disclosed that AFRIBANK has been approved as a settlement bank between Nigeria National Petroleum Company Limited (NNPCL) and Dangote Refinery for this purpose.

The intervention will eliminate the need for international letters of credit and save the country billions of dollars used to import refined fuel.

Adedeji, who is also the Executive Chairman of the Federal Inland Revenue Service (FIRS) stated: “The attitude of Mr. President is thinking outside the box to solve Nigeria’s problem and actually to localise the solutions to Nigeria’s problem.

“He has approved through the Council that effective immediately, NNPC get engaged with local refineries and we are starting that with Dangote Refinery, that the sales of crude oil to Dangote Refinery be denominated in naira and also the sales of byproducts from Dangote Refinery to distributors also be conducted in naira.

The FIRS boss added: “With this approval today through FEC led by Mr President, this has reduced by a minimum of 90 percent. Because what we have today, the transaction will now be down in our local currency not only to Dangote Refinery but to all local refineries for all our local consumption and this will actually stabilize the pump price.

“This will also make economic stability a reality because there will no longer rely on the fluctuation in forex.

“Once again, this is an innovation of solving our problem as a country today.

“Just to be specific, in terms of benefits, one which is major is the reduction in foreign exchange pressure. We utilize $660 million per month, totalling $7.92 billion annually. With the new approval that we have, this will reduce to a maximum of $50 million per month which is annualized to be only $600 million. This is a total reduction of 94% and saving us 7.32 billion.

“This will also reduce finance costs, which today stands at $79 million. When you consider opening letters of credit between those local refineries and what happens?

“And also, the Council has approved the settling bank to be AFREXIM. It will be the lead arranger between NNPC and Dangote Refinery.

And what does it mean to our economy? One, the pressure on foreign exchange will be reduced.”

“So, this is a major innovation in solving Nigeria’s problem permanently. Not only will we have more employment but we will definitely be in charge of one of our mainstay of our economy.

“So, I congratulate the council members, Mr. President, and also congratulate the operator, the NNPC and Dangote Refinery and also the lead arranger, AFREXIM Bank because kudos should go to the President of the African Export-Import Bank, Prof. Benedict Oramah for these initiatives, because these are people that work behind the scenes to make sure that what we witnessed today, happened.”

Business

FG, states, LGs share N1.678trn for February – FAAC

The Federation Account Allocation Committee (FAAC), has shared N1.678 trillion among the Federal Government, states and the Local Government Councils (LGCs) for the month of February.

This is according to a communiqué issued by FAAC and made available by Bawa Mokwa, the Director, Press and Public Relations, Office of the Accountant-General of the Federation (OAGF).

According to the communiqué, the total revenue of N1.678 trillion comprised statutory revenue of N827.633 billion and Value Added Tax (VAT) revenue of N 609.430 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N35.171 billion, Solid Minerals revenue of N28.218 billion and Augmentation of N178 billion.

It said that a total gross revenue of N2.344 trillion was available in the month of February.

“Total deduction for cost of collection was N89.092 billion while total transfers, interventions, refunds and savings was N577.097 billion,’” it said.

The FAAC issued communiqué said that gross statutory revenue of N1.653 trillion was received for the month of February, which was lower than the sum of N1.848 trillion received in January by N194.664 billion.

It said that gross revenue of N654.456 billion was available from VAT in February, lower than the N771.886 billion available in January by N117.430 billion.

The communiqué said that from the total distributable revenue of N1.678 trillion, the Federal Government received total sum of N569.656 billion and the state governments received total sum of N562.195 billion.

It said that the LGCs received total sum of N410.559 billion, and a total sum of N136.042 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue.

“On the N827.633 billion statutory revenue, the Federal Government received N366.262 billion and the state governments received N185.773 billion.

“The LGCs received N143.223 billion and the sum of N132.374 billion (13 per cent of mineral revenue) was shared to the benefiting states as derivation revenue,” the communiqué said.

It said that from the N609.430 billion VAT revenue, the Federal Government received N91.415 billion, the state governments received N304.715 billion and the LGCs received N213.301 billion.

“A total sum of N5.276 billion was received by the Federal Government from the N35.171 billion EMTL. The state governments received N17.585 billion and the LGCs received N12.310 billion.

“From the N28.218 billion Solid Minerals revenue, the Federal Government received N12.933 billion and the state governments received N6.560 billion.

“The LGCs received N5.057 billion and a total sum of N3.668 billion (13 per cent of mineral revenue) was shared to the benefiting States as derivation revenue,’” it said.

It said that Oil and Gas Royalty and EMTL, increased significantly while VAT, Petroleum Profit Tax (PPT), Companies Income Tax, Excise Duty, Import Duty and CET Levies recorded decrease.

Business

NNPCL refutes explosion rumour at Port Harcourt refinery, confirms containment

The Nigerian National Petroleum Company Limited (NNPC Ltd) has debunked reports of an explosion at the Port Harcourt Refining Company (PHRC) in Rivers State.

In a statement issued on March 19, 2025, Olufemi O. Soneye, Chief Corporate Communications Officer, clarified that the event was a flare incident, which has been fully contained without posing any danger to staff, surrounding communities, or the environment.

“There is no danger or health hazard to staff, the surrounding communities, or the environment,” NNPC said in the statement

The company therefore urged the public and media to disregard false claims of an explosion at the refinery, emphasizing that operations remain unaffected.

The NNPC Ltd also reaffirmed its commitment to transparency and safety in its operations.

Business

Rising data costs will worsen Nigeria’s connectivity gap – CITAD warns

The Centre for Information Technology and Development (CITAD) has raised concerns over the increasing cost of internet data in Nigeria, warning that it further widens the country’s existing digital divide.

The centre argued that the increase in data will leave many underserved communities without access to essential online services.

Haruna Adamu Hadeija, the Coordinator of Community Network, CITAD, revealed this while speaking at a press briefing held at the CITAD office in Kano on Monday.

He emphasized the impact of rising data costs on marginalized communities.

According to Hadeija, the 50% tariff increase on data, calls, and SMS approved by the Nigerian Communications Commission (NCC) has made it increasingly difficult for communities already struggling with poor connectivity to access the internet.

“Now that data charges have been jerked up by 50%, students and parents in underserved areas have to ‘dearly’ pay to enable their children to learn online,” Hadeija said.

“This cost hike not only widens the existing connectivity gap but also makes digital liberation nearly impossible for millions of Nigerians.”

Hadeija noted that while Nigeria has made strides in expanding internet access, an estimated 27.91 million people in 97 underserved communities still lack internet access, according to a 2022 report by the Universal Service Provision Fund (USPF).

He highlighted how this lack of connectivity continues to disenfranchise students, youth, and women, particularly those in rural areas.

“In regions where internet access is absent, parents must send their children far from home just to register for computer-based tests, conduct exams, and check their results. It is unfair that many communities are left behind because they cannot afford internet services,” he added.

The CITAD coordinator stressed the need for urgent policy interventions to address the widening digital divide.

He called on the Minister for Digital Economy to officially recognize community networks as an additional layer of connectivity providers in the country.

“We urge the USPF to support local communities with grants to deploy their own connectivity initiatives. These community networks are not competitors to Mobile Network Operators (MNOs); they are complementary solutions to bridge the existing connectivity gap,” Hadeija appealed.

CITAD also proposed capacity-building initiatives to empower local communities in resource mobilization and sustainability to create self-sufficient, community-centered networks.