Economy
Fuel crisis: Nigerians face gloom Yuletide due to $90 million debt
Nigerians may experience severe PMS shortage for the holidays as shipowners threaten to quit providing services to the Nigeria National Petroleum Corporation Limited because they have accrued a $90 million debt for their chartered services over the past nine months.....KINDLY READ THE FULL STORY HERE▶
The ship owners told our correspondent that if nothing was done quickly to settle the indebtedness, they would be forced to terminate the arrangement they had with the NNPC.
A former President of the Nigerian Indigenous Shipowners Association, Aminu Umar, said if the issue was not satisfactorily addressed in the coming weeks, the current petrol supply hitches might be compounded as the members would not be able to fulfil their obligations.
Umar added that if the workers decided to stop because they were not being paid, it would affect the movement of cargoes and that would increase the already existing scarcity.
He said, “There are so many members whose funds have not been paid, so the President is speaking on behalf of SOAN members, who have done business with the NNPC Limited and moved some cargoes and payments are not made. The total amount is almost $90m or over and it is affecting the operations of those companies.
“This may cause more fuel crisis. It is not like the ship owners have stopped lifting for now, but as it is going, they may end up not lifting fuel. Because if someone is not being paid, how will he be able to discharge his duties?
“Remember they too have salaries to pay; they also have to maintain the ships and also pay the banks that fund them. So, all of them are facing problems because of their unpaid funds. In the coming weeks if nothing is done, there may be more fuel crisis because at the end of the day, they will not be able to fulfil their obligations. And if their workers decide to stop because they are not being paid, then it will affect the movement of cargoes and that will compound the already existing scarcity.”
The President, SOAN, MkGeorge Onyung, urged the NNPC Limited to try and pay up the ship owners to enable them to go back to work.
He said, “The NNPC Limited has yet to pay for standard operations. The fact is this, the NNPC contacted ship owners to provide it with Nigerian ships that will do coastal shipping. And we went through the whole processes of negotiations to arrive at the contract of time charter off the vessels for our coastal trade. Granted that the NNPC has metamorphosed into NNPC Limited and the process of transmission may be bureaucratic and of course time consuming.
“We are now almost in the ninth month of working for NNPC Limited and we are still waiting to be paid; that is the fact. Different companies have different contracts and rates. What I am trying to say is yes it is a huge amount of money because some of our members have outstanding with them that are owed before March this year, that is why the amount could reach $90m. The NNPC keeps saying that ship owners should bring evidence; that is not how it works; let them pay the money.”
We also learnt that some of the affected ship owners were contemplating taking legal actions against the NNPC Limited.
The ship owners, who spoke on condition of anonymity because of the sensitive nature of the matter, said the decision to seek legal counsel was based on the consideration that the NNPC was now a limited liability company that could be sued and also sue.
One of them explained, “The NNPC is now a limited liability company that can sue and be sued. Some of us are already considering seeking legal action, because the NNPC is a chronic debtor. The debt owed indigenous ship owners is just too much and the NNPC is not showing any sign of clearing it.
“If the NNPC owes foreign shipping companies the way it owes indigenous shipping firms, we wouldn’t be this bothered. But it seems it is only the indigenous operators that the NNPC toys with. We are not leaving any option out. Part of what some of us are considering is taking legal action, because we are already having issues with our banks. The debt is killing our businesses and the earlier the NNPC pays up, the better for us as business men.”
In 2024, Nigeria’s leading banks collectively spent N518.5 billion on information technology infrastructure, more than doubling their investment compared to the previous year’s N248 billion. This sharp 109% increase—based on audited reports from eight prominent banks—underscores a critical strategic pivot: digital transformation is now central to banking operations, not just an added feature.....KINDLY READ THE FULL STORY HERE▶
The surge in IT spending reflects a broad shift across the industry, with banks upgrading core systems, deploying AI-powered platforms, and enhancing mobile and digital banking experiences to meet evolving customer demands and compete with fast-growing fintech firms.
Top Spenders Access Holdings led the pack with a remarkable N193.5 billion in IT expenditures, marking a 148% rise from 2023. While the bank didn’t announce any sweeping core banking overhaul, it executed multiple backend upgrades seamlessly to avoid service disruption—demonstrating a strong commitment to scaling its digital infrastructure in line with its pan-African growth objectives.
GTCO followed closely, raising its IT investment to N88 billion, a 48.4% increase. A key highlight was its migration to Infosys’ Finnacle banking platform from its earlier software—signaling a major systems revamp.
Zenith Bank nearly doubled its own IT budget, moving from N33.5 billion in 2023 to N67.3 billion. The shift included a switch from Finastra’s Phoenix to Oracle’s Flexcube, intended to enhance both customer interface and backend operations.
Mid-Tier Banks Catch Up Fidelity Bank saw one of the most significant jumps, increasing its IT investment by 239%—from N16.5 billion to N56 billion. This leap signals an aggressive shift towards digital competitiveness.
UBA’s IT spend also doubled, hitting N48 billion from N23.2 billion, driven by upgrades to digital channels and mobile applications. Similarly, Stanbic IBTC ramped up its tech budget by 73.1% to N33.4 billion, while FCMB grew its spending by 58.6% to N26.8 billion.
Wema Bank, despite having the lowest absolute figure (N5.5 billion), registered the highest growth rate at 292.9%, up from just N1.4 billion the previous year.
Although First Bank Holdings has released its 2024 financials, it did not break down IT expenditures, while Sterling Bank’s full-year results were yet to be released at the time of reporting.
What’s Driving the Investment? Traditional banks are feeling the heat from agile fintech challengers like OPay, PalmPay, and Moniepoint, which offer speed, lower costs, and superior digital experiences. To stay competitive, banks are scaling their digital capabilities.
According to Mr. Dipo Alabede, CEO of mobile payments firm Clane, banks must continue investing in IT—not only to expand digital offerings but also to defend against rising cybersecurity threats as digital transactions increase.
Mr. Tayo Ogunlade, CTO at Onafriq, emphasized the need for robust cybersecurity measures and interbank collaboration to protect the growing digital ecosystem.
In summary, Nigeria’s banking sector is undergoing a significant digital shift, with record investments aimed at reshaping financial services, boosting user experience, and maintaining a competitive edge in a rapidly evolving market.
The Federal Government of Nigeria has called on International Oil Companies (IOCs) to increase their investments in the country’s oil and gas sector, emphasizing the favorable investment climate created by the nation’s fiscal policies.....KINDLY READ THE FULL STORY HERE▶
Senator Heineken Lokpobiri, the Minister of State for Petroleum Resources, made the appeal during the Cross Industry Group (CIG) meeting in Florence, Italy, organized by IOCs operating in Nigeria. The meeting aimed to address challenges, expectations, and strategies to enhance Nigeria’s contribution to regional energy needs across Sub-Saharan Africa.
In a statement released by his Special Adviser, Nneamaka Okafor, the minister highlighted that the President Bola Tinubu administration had implemented investment-friendly policies, including incentives for deep water investments. Lokpobiri stressed that while IOCs face challenges related to engineering, procurement, and construction (EPC) contractors, these obstacles can be overcome if IOCs make strong, strategic investment decisions.
“The ball is in the court of the IOCs and other operators to make the investment decisions that will drive increased production and sustainability in the sector,” the minister said, emphasizing the government’s role in creating an environment conducive to investment.
Furthermore, Lokpobiri called for support from IOCs for local refining efforts, noting the government’s push to bring more refineries online, which will require a steady supply of crude oil. He also reiterated the government’s commitment to enforcing the “drill or drop” provisions of the Petroleum Industry Act (PIA), aiming to ensure that idle assets are developed or redistributed to willing investors.
The minister’s remarks also encouraged collaborative measures such as resource sharing and farm-outs, particularly for underutilized assets, to promote production. He warned that the government would reclaim assets that remained underdeveloped for decades.
In response, Osagie Osunbor, Chairman of the Oil Producers Trade Section (OPTS), praised the minister for engaging directly with industry players and affirmed the government’s commitment to creating a favorable investment environment.
The Federal Government remains steadfast in fostering a thriving oil and gas industry and expects IOCs to match this commitment by making tangible investment decisions that will contribute to Nigeria’s energy security and economic growth.
The black market exchange rate between the United States Dollar (USD) and the Nigerian Naira (NGN) for today, March 31, 2025, has been released.....KINDLY READ THE FULL STORY HERE▶
According to reliable sources at the Bureau De Change (BDC), the exchange rate at the Lagos Parallel Market, commonly referred to as the black market or Aboki FX, shows that traders are buying dollars at ₦1,560 and selling at ₦1,580 as of Sunday, March 30, 2025.
It is important to note that the Central Bank of Nigeria (CBN) does not officially recognize or endorse the parallel market rates. Instead, the CBN advises individuals who wish to engage in forex transactions to approach their respective commercial banks.
For comparison, the official CBN rate for the dollar today shows a highest rate of ₦1,542 and a lowest rate of ₦1,520. However, exchange rates may vary depending on the provider or location.
Foreign exchange rates in the black market often differ from the official rates set by the CBN, influenced by factors such as demand and availability. As a result, forex traders and individuals looking to convert dollars to naira are advised to verify rates before making transactions.
Stay informed with the latest updates on the dollar to naira exchange rate and other economic news.
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