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Fuel crisis: Nigerians face gloom Yuletide due to $90 million debt

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4 years ago

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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.”

Even though there were long lines at the Conoil and Total gas stations that were next to the company’s Abuja headquarters, the NNPC declined to comment when asked about its debt to local ship owners.
When approached between Wednesday and Friday regarding the claims made by the ship owners, its spokesperson, Garba-Deen Muhammad, promised to respond.
He did not, however, reply to messages sent to his mobile phone number via WhatsApp and text regarding the issue.
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Economy

PETROL PRICE PARADOX: Why You Are Still Paying N1,200+ Despite Global Crude Crash.

Published

1 month ago

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June 25, 2026

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Despite a significant drop in global crude oil prices—with Brent falling to $73.14 and WTI to $69.85—petrol prices in Nigeria remain stubbornly high. While global markets have stabilized following the US-Iran conflict, domestic pump prices have barely budged, hovering between ₦1,200 and ₦1,300 per litre.....KINDLY READ THE FULL STORY HERE▶

Although industry insiders argue that ex-depot prices should be closer to ₦700, experts warn that a direct price drop is unlikely. Dr. Ayodele Oni, an oil and gas analyst, explains that in a deregulated market, the naira’s exchange rate is just as critical as the price of crude. He emphasizes that while falling crude prices help, the cost of petrol will only truly stabilize if the naira remains strong, as refined product imports are dollar-denominated. Consequently, relief for the average Nigerian may remain elusive unless both crude prices and the currency improve simultaneously.

Option 2: Accessible and Direct (Best for blogs or general reading)

Global oil prices are nearing pre-conflict levels, but Nigerians aren’t seeing the expected relief at the pump. Even though international oil benchmarks have dropped significantly since the US-Iran tensions cooled, local fuel prices remain stuck at ₦1,200 to ₦1,300 per litre.

Many marketers believe pump prices should be much lower, suggesting a price point closer to ₦700 per litre given current market conditions. However, analysts caution that it isn’t that simple. Because Nigeria’s fuel market is deregulated and reliant on imported refined products, the value of the naira is a major factor. Essentially, even if the price of crude oil falls, the cost of petrol will stay high as long as the dollar remains expensive against the naira. For now, experts believe that significant price relief depends as much on currency stability as it does on global oil trends.

Key Takeaways (Bullet Points)

  • The Disconnect: Global oil prices have returned to pre-conflict levels, yet domestic petrol prices remain high (₦1,200–₦1,300 per litre).

  • The Expectation: Marketers and the public believe current crude prices warrant a drop to around ₦700 per litre at the depot level.

  • The Complication: Experts note that the deregulation of the sector means the naira-to-dollar exchange rate is now a more powerful driver of pump prices than global crude costs alone.

  • The Outlook: Relief for consumers is unlikely to happen based on oil prices alone; it requires a combination of lower crude costs and a more stable naira.

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Economy

UNBEARABLE BURDEN: Nigerians Groan As Cooking Gas Hits Unprecedented ₦2,000 Per Kilogram.

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2 months ago

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June 1, 2026

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Despite a significant shift toward domestic production and a drop in imports, the price of Liquefied Petroleum Gas (LPG) has surged to ₦2,000 per kilogram in various parts of Nigeria. Data from the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) indicates that local facilities—including the Dangote Petroleum Refinery—have become the primary suppliers of LPG between April 2025 and April 2026, with daily domestic supply reaching 4,500 tonnes by April 2026. Conversely, imports have plummeted, falling from 1,600 tonnes per day in November 2025 to just 200 tonnes per day by March 2026.....KINDLY READ THE FULL STORY HERE▶

Market Challenges and Consumer Hardship

Even with consistent local output, consumers are facing prohibitive costs and localized shortages, leading many households to abandon gas in favor of charcoal and firewood. Key issues contributing to the crisis include:

  • Supply Chain Barriers: Marketers report that sourcing the product has become increasingly difficult, and they are now paying between ₦25.2 million and ₦26.2 million for 20 metric tonnes of LPG.

  • Economic Impact: The Nigerian Association of Liquefied Petroleum Gas Marketers (NALPGAM) stated that these high costs are causing severe hardship for families, food vendors, and small businesses.

  • Policy Setbacks: Stakeholders warn that these trends threaten to reverse years of progress in promoting clean energy adoption and may lead to increased environmental damage.

Infrastructure Progress

While market prices remain high, the Nigerian Gas Infrastructure Company reports that several critical projects designed to improve gas transportation are nearing completion. As of the latest data:

  • The Ajaokuta-Kaduna-Kano (AKK) Gas Pipeline Project is 93.40% complete.

  • The OB3 River Niger Crossing stands at 93.88% completion.

  • The ELPS Midline Compressor Project has reached 94.45% completion.

  • The Odidi-Warri Expansion Project is 70.28% complete, while the Escravos-Odidi project is in its early stages at 17.49%.

Despite this infrastructure progress, industry experts emphasize that addressing distribution bottlenecks remains essential, as increased domestic production alone has so far failed to lower retail prices for the average Nigerian.

Is there a specific aspect of this situation—such as the infrastructure projects or the marketers’ stance—that you would like to explore further?

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Economy

REVOLUTIONIZING THE SKIES: How Nigeria’s New $7 Billion AfDB Deal Will Transform Air Travel Forever!.

Published

2 months ago

on

May 29, 2026

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Nigeria has officially signed a Letter of Intent with the African Development Bank (AfDB) to advance aviation development across the continent. Minister of Aviation and Aerospace Development, Festus Keyamo, formalized the agreement during a dialogue in Brazzaville, Congo, where he served as the African Champion of the AfDB’s Integrated Aviation Transformation Programme.....KINDLY READ THE FULL STORY HERE▶

During the session, Minister Keyamo showcased President Bola Tinubu’s “Renewed Hope Agenda,” emphasizing the need for capital to support key infrastructure and the newly established Nigeria Aircraft Leasing Company. To attract this investment, the Minister highlighted Nigeria’s recent regulatory reforms, including the domestication of the Cape Town Convention and updates to insurance frameworks. In response, AfDB President Dr. Sidi Ould Tah pledged the bank’s support for the programme, signaling a shared commitment to strengthening aviation finance and infrastructure throughout Africa.

Nigeria Moves to Boost Aviation Sector Through AfDB Partnership

Nigeria has taken a major step toward modernizing its aviation industry by signing a Letter of Intent with the African Development Bank (AfDB). Aviation Minister Festus Keyamo, representing the country in Brazzaville, Congo, utilized the platform to present Nigeria’s aviation roadmap under President Tinubu’s “Renewed Hope Agenda.”

A core focus of the discussion was the Nigeria Aircraft Leasing Company, which is expected to improve aircraft financing for local operators. Minister Keyamo assured stakeholders that Nigeria is ready for increased investment, citing significant reforms such as the domestication of the Cape Town Convention and modernized insurance policies. The AfDB has signaled strong support for these initiatives, agreeing to collaborate on the Integrated Aviation Transformation Programme to drive sustainable growth for Nigeria and the wider African aviation market.

Option 3: Short & Punchy (Best for social media or newsletters)

Nigeria is accelerating its aviation growth through a new partnership with the African Development Bank (AfDB). Aviation Minister Festus Keyamo recently signed a Letter of Intent in Brazzaville to unlock funding for the sector, specifically targeting the new Nigeria Aircraft Leasing Company. By implementing key reforms—like the domestication of the Cape Town Convention—Nigeria is positioning itself as a hub for aviation investment. The AfDB has officially pledged its support, marking a key milestone in efforts to modernize air travel infrastructure across the African continent

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