All Posts in "Month: January 2026"

Nigerians cut household spending by N14tn as inflation bites hard

Olawale EdunHousehold consumption in Nigeria slumped sharply in real terms in 2024 as rising prices eroded the purchasing power of millions of families, according to provisional figures from the Central Bank of Nigeria’s latest statistical bulletin.

Data on Gross Domestic Product by expenditure showed that household final consumption expenditure at 2010 constant purchasers’ prices fell from N45.41tn in 2023 to N31.12tn in 2024.

This represents a real decline of about N14.29tn, or roughly 31 per cent year-on-year, signalling a major contraction in the volume of goods and services consumed by households. Constant price data are adjusted for inflation, meaning they strip out the effect of rising prices to measure actual changes in economic activity.

When this measure collapses, as seen in 2024, it suggests that households are cutting back materially on what they can afford, not just paying more for the same items. However, the same indicator measured at current purchasers’ prices tells a very different but revealing story.

Household consumption at current prices rose from N146.69tn in 2023 to N173.01tn in 2024, an increase of about N26.31tn or nearly 18 per cent. Current price figures are not adjusted for inflation. They simply reflect what households spent in naira terms.

The fact that nominal spending rose while real spending plunged shows that Nigerians are spending more money but getting less value, with inflation swallowing a large share of household budgets.

The steep fall in real household spending is consistent with the sustained double-digit inflation that characterised the year. Nigeria’s headline inflation rate began 2024 at 29.90 per cent in January, up from around 28.9 per cent in December 2023, reflecting continued pressure on prices early in the year.

Throughout 2024, inflation climbed further, with official data showing it reached around 34.80 per cent in December 2024, one of the highest annual rates in the decade.

The year-on-year inflation acceleration over 2024 was driven by persistent increases in food and other essential prices and was marginally higher at the end of the year compared with November.

The persistent high inflation through 2024 compounded the cost-of-living squeeze on Nigerian households. Soaring food, transport, energy, and accommodation costs have pushed many families to the edge, forcing them to prioritise basic survival over discretionary spending.

Even staple food items rose beyond the reach of many lower-income earners, while the removal of petrol subsidy and exchange rate pressures filtered through to almost every aspect of daily living.

The data also paint a worrying picture of real employee earnings. Compensation of employees at 2010 constant purchasers’ prices fell from N28.27tn in 2023 to N25.48tn in 2024.

This represents a drop of about N2.78tn, or close to 10 per cent. In simple terms, when adjusted for inflation, the total value of wages and salaries in the economy declined, meaning workers’ earnings bought less than they did a year earlier.

By contrast, compensation of employees at current prices increased from N63.83tn to N75.59tn, a nominal rise of roughly N11.76tn or about 18 per cent. This again highlights the inflation problem.

While employers may have raised salaries on paper, those increases were not enough to keep pace with rising prices. Real incomes shrank despite higher nominal pay, reinforcing the pressure on household consumption.

Economists often rely on constant-price indicators to understand whether an economy is genuinely expanding or contracting. In this case, the slump in real household spending signals weakening domestic demand, which is a key engine of economic growth.

Household consumption typically accounts for the largest share of GDP on the expenditure side. When consumers cut back at this scale, businesses in retail, manufacturing, services, and hospitality are likely to feel the impact through lower sales, slower production, and reduced investment.

Earlier in 2024, the Chief Executive Officer of Centre for the Promotion of Private Enterprises, Muda Yusuf, said the persistent inflationary pressures continue to be a troubling phenomenon.

Reacting to inflation figures released by the NBS in February 2024, Yusuf said in a statement that the purchasing power had continued to slump over the past few months, pushing Nigerians into poverty.

The CPPE CEO bemoaned that, as inflation maintained an upward trend, economic growth may remain subdued, while the risk of stagflation heightens

“Regrettably, the major inflation drivers are not receding; if anything, they have become even more intense. These include the depreciating exchange rate, surging transportation costs, logistics challenges, forex market illiquidity, astronomical hike in diesel cost, insecurity in farming communities, and structural bottlenecks to production. These are largely supply-side issues.

“The weakening of the naira against the currency of our neighbouring countries [CFA], has continued to incentivise the outflow of agricultural products to these countries. This is complicating the supply side challenges, especially of food crops,” the CEO said.

According to Yusuf, the high inflation is causing increased pressure on production costs, making it harder for businesses to maintain profitability. This, in turn, is eroding shareholder value and lowering investor confidence.

By January 2024, the National President of the Association of Small Business Owners of Nigeria, Dr Femi Egbesola, said the rising inflation has negatively impacted the private sector and the economy as a whole.

He said, “This is because inflation has led to a loss of consumers’ purchasing power, increased production costs, and a reduction in profitability. Inflation has made our businesses less attractive for investors and, by extension, the economy.”

As inflation rises, low labour income has pushed an estimated 14 million Nigerians into poverty in 2024, according to the World Bank’s report on Macro Poverty Outlook: Country-by-Country Analysis and Projections for the Developing World.

The report noted that nearly 47 per cent of the Nigerian population now lives below the international poverty line of $2.15 per day, as surging inflation and a struggling economic structure fail to meet the demands of rapid population growth.

It read, “Labour incomes have not kept pace, pushing an additional 14 million Nigerians into poverty in 2024. An estimated 47 per cent of Nigerians now live in poverty (or below the international poverty line of $2.15.”

In response to the rising poverty levels, the report noted that the Nigerian government has launched temporary cash assistance initiatives targeting 15 million households.

Each household will receive N75,000, distributed in three instalments, benefitting an estimated 67 million people overall.

The World Bank added, “Poverty is estimated at 52 per cent in 2026. Reforms to protect the poorest against inflation and boost livelihoods through more productive work are key for Nigerians to escape poverty. A tight monetary stance while avoiding reliance on ways and means remains crucial for moderating inflation.”

The World Bank stressed the need for continued reforms, noting that “While macro stabilisation is essential and currently underway, by itself it is insufficient to enable Nigeria to reach its growth potential. Sustained efforts and the establishment of a credible track record are necessary to achieve sustained progress.

“Economic growth has struggled to keep pace with population growth, contributing to poverty exacerbated by double-digit inflation.”

admin by — January 6, 2026 in Business 0
Rivers SSG, Benibo Anabraba dumps PDP as political crisis worsens

Secretary to the Rivers State Government, Dr. Benibo Anabraba, has resigned his membership of the Peoples Democratic Party, PDP.

This was contained in a letter dated January 5, 2026, and addressed to the PDP Chairman, Ward 1, Akuku-Toru Local Government Area of the state.

According to the letter, Benibo Anabrab’s decision to quit the main opposition party is “personal”.

He appreciated the “political leverage gained from the party during the period of my membership”.

Although Anabrab failed to state his next political party, it was gathered that he had joined the ruling All Progressives Congress APC.

DAILY POST reports that there has been a mass defection from PDP to the ruling party since the state governor, Siminalayi Fubara left the opposition party.

The state is currently facing another shot of political crisis as the Minister of the Federal Capital Territory Nyesom Wike and his estranged political son Governor Fubara resumed their face-off.

While Fubara apparently joined the ruling party in a bid to return to the government house in 2027, Wike vowed to terminate the dream.

admin by — January 5, 2026 in News 0
ADC gains 5,000 members in Abia after Peter Obi’s entrance

The African Democratic Congress, ADC, on Saturday, received 5,000 members in Abia State, barely one week after the former presidential candidate of the Labour Party, Mr. Peter Obi joined the party.

The 2023 governorship candidate of the Accord Party, Bishop Emeka Nwankpa on Sunday, led the mass defection in his country home, Umuaku, Ntigha, Isiala Ngwa North LGA of Abia State.

The supporters, who followed him into the ADC, while speaking at the event, said they left their former political parties and structures, including the South East Mandate for Good Governance, before decamping to the ADC, together with their leader.

Speaking at the event, Nwankpa said his decision to pitch his tent with the ADC was borne out of deep conviction, explaining that ADC’s manifesto aligned  closely with his personal political philosophy, which according to him was anchored on people-oriented governance, social justice, and sustainable development.

He described the ADC as a credible and progressive platform capable of driving the kind of inclusive and people-centred governance Nigerians yearn for, adding that the party offers a fresh opportunity to rebuild public trust in politics.

Bishop  Nwankpa  and his supporters were welcomed to the ADC by Abia State Chairman,  Don Norman Obinna.

The Chairman said that the political direction of the country is heading towards ADC.

admin by — January 5, 2026 in News 0
Taraba students battle multiple challenges as govt convert boarding to day schools

As schools across Taraba State prepare to reopen on Monday, the familiar early morning rush will no doubt take an unfamiliar shape for thousands of families.

Students who once woke to the clang of hostel bells and the predictability of supervised routines, will now rise before dawn scrambling onto buses, trekking long distances or navigating unreliable transport networks just to arrive in school on time.
This new reality, as observed  by DAILY POST, follows recent directive bygovernor Agbu Kefas for the immediate closure of all boarding hostels in public and private secondary schools across the state.

Weeks after the announcement, the policy is noticed to have begun to reshape daily life for students, parents and educators alike, effectively converting all secondary schools into day schools.

The government insists the move was unavoidable. According to the Commissioner for Education, Augustina Godwin, the directive was prompted by a nationwide surge in kidnappings, including attacks on schools in several states. In Taraba, she said, boarding hostels had become particularly vulnerable, with recent insecurity incidents heightening fears for students’ safety.

For many students, boarding school represented far more than a place to sleep. It offered structure set study hours, close supervision and a stable learning environment that was often lacking at home. Teachers who spoke to our reporter said that stability has been abruptly replaced by long commutes, irregular attendance and mounting distractions.

Learning time has been cut. Some of them travel for hours every day. By the time they get here, they are already worn out,” one teacher said.

Parents are feeling the pressure. Those who live far from schools, particularly in rural communities, describe daily attendance as exhausting and expensive. Transport fares, meals and constant supervision must now be juggled alongside work and other responsibilities.

“What used to be a full-time school solution is now an exhausting daily obligation. You have to rush to work, rush back, and worry about food, transport and safety all at once,” one parent said.

Low income families, parents confessed that they are bearing the heaviest burden. In some households, the financial and emotional strain is already forcing difficult choices. Our reporter observed rising absenteeism in several schools, while some families are considering withdrawing their children altogether.

Education stakeholders warn that the policy could deepen inequality within the system. For decades, boarding schools served as a critical bridge for students from remote communities, providing access to education that geography would otherwise deny them. Without hostels, school heads fear that only families in urban centres or with better resources will be able to sustain regular attendance.

A secondary school principal, who requested anonymity, expressed particular concern for girls and other marginalised groups. Daily travel, he said, raises safety and cultural concerns that could make them the first to drop out.

“This decision affects everyone, but not equally. Some children will simply disappear from the classroom,’ he said

Teachers also point to longstanding challenges within Taraba’s education sector, including dilapidated infrastructure, overcrowded classrooms and shortages of basic facilities such as water and toilets. Removing boarding options, they argue, has compounded these problems, leaving already vulnerable students with even fewer pathways to learning.

The concern was also observed to have extends beyond the state,as the Christian Reformed Church–Nigeria (CRC-N), in a recent communiqué issued after its 161st General Church Council in Takum, acknowledged the reality of insecurity in schools but warned that shutting down boarding facilities could undermine national development.

While noting what it described as improvements in security under President Bola Ahmed Tinubu, the Church urged authorities to strengthen school protection rather than restrict access to education.

School administrators  who also echoed the call said without additional safeguards or a review of the policy, many children especially those from rural and low income communities risk being pushed permanently out of the education system.

“For many students, boarding schools offered stability and support.  Losing that environment is more damaging than many people realise,” one of the school principal said.

As classrooms across Taraba reopen, educationists who spoke to DAILY POST believe the challenge is not only about security but about balancing how to protect students without closing the very doors that give them a chance to be future leaders.

admin by — January 5, 2026 in News 0
Nigerian Govt reveals main beneficiaries of new tax reforms

The Nigeria Revenue Service, NRS, has disclosed the main beneficiaries of the new tax law instituted by President Bola Tinubu.

Speaking in an interview on Sunday on Arise Television monitored by DAILY POST, the Executive Chairman of the Nigeria Revenue Service, Zacchaeus Adedeji, said the poor are the main beneficiaries of the new tax reforms.

Adedeji said the government is not taxing more, adding that looking at all the exemptions, more than 95% of the poor are totally exempted.

The NRS boss stressed that removing Value Added Tax, VAT, on all food item is still to the advantage of the poor because 90% of disposable income for poor is for food.

“We remove VAT totally from those ones. The same thing on transportation, which is also in the poor.

“So if you look at the total and the net benefit, the poor are the most beneficiary of this tax reform,” he said.

admin by — January 5, 2026 in News 0
Soldiers kill eight terrorists in Borno, Kogi, free hostages

Soldiers.fwTroops of Operation Hadin Kai have killed five terrorists and rescued three kidnapped civilians during a coordinated operation in Konduga Local Government Area of Borno State.

Also, troops of the 12 Brigade of the Nigerian Army, Lokoja, killed three bandits during operations in parts of Kabba Bunu and Yagba West Local Government Areas of Kogi State.

The Borno operation, carried out in the early hours of Sunday, was disclosed in a statement by the Media Information Officer of the Joint Task Force, North-East, Operation Hadin Kai, Lt. Col. Uba Sani.

According to the statement, the troops, working alongside members of the Civilian Joint Task Force, engaged the terrorists at a known crossing point along the Sojiri axis of Konduga LGA.

“Troops of Operation HADIN KAI have recorded another operational success following a well-coordinated offensive against terrorist elements in Konduga Local Government Area of Borno State, leading to the rescue of kidnapped civilians,” the statement read.

Sani said the encounter resulted in the neutralisation of five terrorists without any casualty on the side of the troops.

“Five terrorists were neutralised without any casualty to own troops, underscoring the professionalism, precision and combat effectiveness of the security forces,” he said.

He added that three civilians abducted by the terrorists were successfully rescued during the operation, while items recovered included AK-47 rifles and other sundry materials.

“The successful operation highlights OPHK’s sustained commitment to aggressive offensive actions against terrorist elements while prioritising the protection of civilians. Troops’ morale remains high, and security forces continue to dominate the operational environment across the theatre,” the statement added.

Also, in a statement on Sunday, the spokesman for the 12 Brigade of the Nigerian Army, Lokoja, Lt. Hassan Abdullahi, said the troops recorded significant operational successes in parts of Kabba Bunu and Yagba West Local Government Areas of Kogi State, neutralising three bandits during separate operations.

He said the operations were conducted on January 3, 2026, following credible intelligence on the movement of bandits.

“Acting on credible intelligence on the movement of bandits from the Adankolo general area towards Agbadu Bunu in Kabba Bunu LGA, troops swiftly deployed and laid a deliberate ambush at an identified crossing point,” Abdullahi said.

He explained that the bandits ran into the ambush and were engaged, forcing them to withdraw with casualties. “During the encounter, troops neutralised two bandits and recovered one AK-47 rifle, one magazine, 99 rounds of 7.62mm special ammunition, one locally fabricated gun and 11 cartridges,” he said.

In a related development, further intelligence revealed the movement of bandits around Saminaka village in Yagba West LGA. Abdullahi said troops, working with local vigilantes, conducted a fighting patrol in the area.

“Troops made contact with an unconfirmed number of bandits and engaged them, leading to their withdrawal through the forest. During exploitation, troops discovered one neutralised bandit, one AK-47 rifle and 17 rounds of 7.62mm special ammunition,” he added.

During the same operation, the troops arrested a suspected bandit logistics supplier, identified as Sunday Adedotun, from Odo Eri village in Yagba West LGA.

The suspect was apprehended on farmland within Saminaka village. Items recovered included cartons of energy drinks, bottled water and harvested farm produce. He is currently in custody undergoing investigation.

The Commander of 12 Brigade, Brigadier General Kasim Sidi, commended the troops for their professionalism and timely response to intelligence, assuring that aggressive patrols and intelligence-driven operations would be sustained to deny criminal elements freedom of action.

Reacting, the Kogi State Government reaffirmed its commitment to a sustained crackdown on criminal elements across the state.

The Commissioner for Information and Communications, Kingsley Fanwo, said security agencies were actively tracking criminals, with major operations underway to rescue abducted victims.

Fanwo spoke amid recent protests by residents of Kabba Bunu communities over persistent banditry, which they said had forced many villagers to abandon their homes.

“We understand the trauma faced by families of kidnapped victims and are deeply concerned about their well-being. The Governor has invested heavily in ensuring the state possesses the capacity to crush criminal elements,” Fanwo said.

He thanked President Bola Tinubu, the National Security Adviser, Service Chiefs, the DSS, the Inspector-General of Police and the NSCDC for their support, adding that the government remained determined to rescue every abducted resident.

“We will make sure every Kogite in their hands is rescued. We also sympathise with families that have lost loved ones. The security situation has improved significantly,” he said, while cautioning that protests must remain peaceful and free of political motives.

Fanwo also commended the lawmaker representing Yagba Federal Constituency, Leke Abejide, for providing logistics to support security operations, warning that anyone disturbing public peace under the guise of protest would face the full weight of the law.

admin by — January 5, 2026 in News 0
Tinubu orders manhunt as terrorists kill over 40 in Niger

President Bola Ahmed TinubuPresident Bola Tinubu has ordered a manhunt for the terrorists responsible for a deadly attack on communities in Niger State that left more than 40 people dead and many others abducted.

In a statement on Sunday personally signed by him, the President said he had directed the Minister of Defence, the Chief of Defence Staff, the Service Chiefs, the Inspector-General of Police and the Director-General of the Department of State Services to track down the perpetrators of the Kasuwan Daji attack and ensure they are brought to justice.

“These terrorists have tested the resolve of our country and its people. They must face the full consequences of their criminal actions,” Tinubu said.

“No matter who they are or what their intent is, they must be hunted down. In addition, those who aid, abet or enable them will also be brought to justice,” he added.

The President further ordered the immediate rescue of all abducted victims and directed that security operations around vulnerable communities, particularly those near forests, be intensified.

“These times demand our humanity. We must stand together as one people and confront these monsters in unison. United, we can and must defeat them and deny them any sanctuary. We must reclaim peace for these attacked communities,” Tinubu said, praying for the repose of the victims’ souls.

The presidential directive followed coordinated attacks by suspected bandits on Saturday afternoon in Agwara and Borgu local government areas of Niger State.

According to the Niger State Police Command, the attackers are believed to have emerged from the National Park forest along Kabe District before storming Kasuwan Daji in Demo Village via Kabe.

Police spokesman Wasiu Abiodun said the attack began around 4:30 pm and lasted for several hours.

“At about 4:30 pm on Saturday, suspected bandits invaded Kasuwan Daji, killed over 30 persons, burnt the market, looted shops and carted away food items,” Abiodun said.

He added that the attackers operated with little resistance due to the remoteness of the area, noting that security forces were later deployed.

“A joint security team has visited the scene, and efforts are ongoing to rescue the abducted victims. Further developments will be communicated,” he said.

While the police put the death toll at over 30, residents and community leaders said the casualties were significantly higher.

The Director of Communications of the Catholic Diocese of Kontagora, Rev. Fr Stephen Kabirat, said no fewer than 40 people were killed during the raid.

admin by — January 5, 2026 in News 0
OPEC+ pauses oil output hike, weighs Venezuela shock

OPECThe Organisation of Petroleum Exporting Countries and its allies, OPEC+, have agreed to pause their planned oil supply increases through the first quarter of 2026, opting to maintain current production levels amid a growing global surplus and uncertainty surrounding future output from Venezuela.

The decision was reached at a brief meeting on Sunday led by the group’s dominant producers, Saudi Arabia and Russia, according to a Bloomberg report.

Delegates at the meeting said it would be premature to adjust supply policy in response to recent political developments in Venezuela, following the reported capture of the country’s leader, Nicolás Maduro, by United States forces.

The report read, “OPEC+ stuck with plans to pause supply increases in the first quarter at a meeting on Sunday, as global markets face a surplus and the group awaits clarity on whether the shock US capture of Venezuelan leader Nicolas Maduro will impact supplies.

“Key members led by Saudi Arabia and Russia will maintain collective production levels through the end of March, the delegates said, asking not to be identified because the decision isn’t public.

“While they added it would be premature to adjust supply in response to Maduro’s capture, the outlook for Venezuelan output may become an important question in the months ahead for the group.”

Bloomberg noted that the virtual meeting lasted less than 10 minutes and did not include detailed discussions on Venezuela, as members agreed that any immediate supply response would be hasty.

Key producers confirmed that collective output levels would be maintained at least until the end of March 2026, reflecting a cautious stance as oil markets face oversupply and weakening price momentum.

Global crude markets have struggled under the weight of excess supply, with oil futures falling about 18 per cent last year, their steepest annual decline since the COVID-19 pandemic in 2020.

Forecasts for 2026 also point to a widening supply glut as production from OPEC+ and non-OPEC producers continues to outpace demand growth. Venezuela, which holds the world’s largest proven oil reserves, currently produces about 800,000 barrels per day, less than one per cent of global supply and a fraction of its historical capacity.

While the country’s long-term output recovery could add significant volumes to the market, analysts say such a turnaround would take years, even with renewed foreign investment.

US President Donald Trump recently said American oil companies could invest billions of dollars to rebuild Venezuela’s dilapidated energy infrastructure following the military operation that led to Maduro’s capture. However, sources cited by Bloomberg said key oil facilities were not damaged during the operation.

The latest pause comes after a strategic shift by OPEC+ in April 2025, when the group began rapidly restoring production cuts introduced in 2023. The move was widely seen as an attempt to reclaim market share lost to rivals such as US shale producers, despite signs that global supply was already ample.

Before Sunday’s decision, OPEC+ had agreed to bring back about two-thirds of the 3.85 million barrels per day of output previously curtailed, leaving roughly 1.2 million barrels per day yet to be restored.

However, actual supply increases have lagged behind targets due to capacity constraints in some member states and efforts by others to compensate for earlier overproduction.

The decision to freeze supply increases carries significant implications for Nigeria’s oil-dependent economy. As Africa’s largest crude producer and a member of OPEC, Nigeria’s fiscal position remains closely tied to global oil prices and export volumes.

By maintaining current output levels in a market already facing surplus, OPEC+ is likely to keep crude prices stable but subdued in the near term, limiting upside revenue potential for oil exporters.

Oil earnings account for the bulk of Nigeria’s foreign exchange inflows and a substantial share of government revenue, making OPEC+ supply decisions critical for budget planning, debt servicing, and exchange rate stability.

Nigeria has also struggled in recent years to fully meet its OPEC production quota due to oil theft, pipeline vandalism, and years of underinvestment, constraining its ability to benefit even when output caps are loosened.

Prolonged periods of weak oil prices could further strain Nigeria’s public finances, widen budget deficits, and increase pressure on the naira.

In response, the Federal Government has continued to push reforms aimed at boosting crude output, improving domestic refining capacity, and accelerating economic diversification away from oil through non-oil exports and domestic revenue mobilisation.

OPEC+, which includes the 13-member OPEC bloc and allies such as Russia, controls a significant share of global oil supply, giving its production decisions outsized influence over oil prices and the economic fortunes of oil-producing nations like Nigeria.

admin by — January 5, 2026 in Business 0
NNPC subsidiaries’ debt balloons 70% to N30tn

GCEO NNPC Ltd, Mr Bashir Bayo Ojulari addresses the staff of the company during his inaugural town hall meeting held at the NNPC Towers, on Thursday. CREDIT: NNPCLDespite its transition into a commercial entity, the Nigerian National Petroleum Company Limited is grappling with mounting financial pressure as unviable and underperforming subsidiaries deepen inter-company indebtedness, pushing outstanding obligations owed to the company to N30.30tn.

Latest findings from NNPC’s 2024 audited financial statements showed that debts owed by subsidiaries, joint ventures, and other related entities rose by 70.4 per cent, or N12.52tn, from N17.78tn in 2023 to N30.30tn as of December 31, 2024. The sharp increase has raised fresh concerns about the company’s liquidity management and long-term financial sustainability.

An analysis of the audited accounts, recently released by the oil firm, conducted on Sunday, revealed that several of the national oil company’s core operating subsidiaries—particularly its refineries, trading arms, and gas infrastructure units—accounted for the bulk of the ballooning intercompany receivables.

The report showed that while the national oil company operates 32 subsidiaries, only eight are not indebted to the parent company, leaving the majority burdened with varying levels of inter-company debt.

This development comes as NNPC continues to navigate concerns surrounding the write-off of substantial debts owed to the Federation and advances plans to divest non-core assets as part of its ongoing transformation into a profitable, commercially oriented national oil company.

Last week, The PUNCH exclusively reported that President Bola Tinubu approved the cancellation of a significant portion of the debts owed by NNPC to the Federation Account, wiping off about $1.42bn and N5.57tn after a reconciliation of records between both parties.

The company has also begun moves to sell stakes in some of its oil and gas assets.

Announcing the company’s 2024 financial results, Group Chief Executive Officer, Bashir Bayo Ojulari, said NNPC recorded a Profit After Tax of N5.4tn on the back of N45.1tn in revenue for the year, representing increases of 64 per cent and 88 per cent respectively over the 2023 figures.

Despite these strong headline numbers, the surge in inter-company debts to N30.30tn underscores the need for a rethink of liquidity strategy and balance-sheet management if the company is to sustain profitability and successfully execute its planned divestments and restructuring.

Topping the list of subsidiaries owing NNPC is the Port Harcourt Refining Company Limited, which posted inter-company debts of N4.22tn in 2024, up sharply from N2.00tn in 2023. This reflects the financial strain associated with years of rehabilitation spending and prolonged operational downtime.

Next was the Kaduna Refining and Petrochemical Company Limited, whose obligations rose to N2.39tn from N1.36tn a year earlier, while the Warri Refining and Petrochemical Company Limited owed N2.06tn, up from N1.17tn in 2023.

The PUNCH reports that although the Port Harcourt, Warri, and Kaduna refineries have undergone several rounds of turnaround maintenance aimed at boosting domestic refined petroleum output, they have yet to operate sustainably at commercially viable levels.

As a result, they remain largely dependent on continued financial support from the parent company, contributing significantly to rising inter-company debts reflected in NNPC’s 2024 accounts.

NNPC’s trading operations also featured prominently, with NNPC Trading SA owing the parent company N19.15tn, more than double the N8.57tn recorded in the previous year.

Smaller but notable receivables were recorded from NNPC Gas Infrastructure Company Limited (N847.98bn), Nigerian Pipelines and Storage Company Limited (N466.74bn), Maiduguri Emergency Power Plant (N179.33bn), NNPC Eighteen Operating Limited (N681m), NNPC Trading Services (UK) Limited (N1.97bn), Nidas Shipping Service Agency Limited (N1.26bn), Kaduna IPP Limited (N1.83bn), Kano IPP Limited (N1.47bn) and Hyson Nigeria Limited (Joint Venture) (N102m).

Other subsidiaries with outstanding balances include Petroleum Products Marketing Company Limited (N264.75bn), NNPC Medical Services Limited (N106.75bn), NNPC Shipping and Logistics Limited (N99.99bn), NNPC Gas Marketing Company Limited (N54.71bn), NNPC Engineering and Technical Company Limited (N50.86bn), Gwagwalada Power Limited (N326.58bn), National Petroleum Telecommunication Limited (N26.37bn), NNPC LNG Limited (N28.22bn), NNPC Properties Limited (N18.94bn), and NNPC New Energy Limited (N5.51bn).

In total, amounts owed by related parties climbed from N17.78tn in 2023 to N30.30tn in 2024, underscoring deepening liquidity pressures within the NNPC group structure.

Conversely, the report showed that NNPC’s obligations to its subsidiaries and related entities also increased, rising to N20.51tn in 2024 from N14.17tn in 2023, representing a 44.7 per cent year-on-year increase.

The bulk of this exposure relates to NNPC Trading Limited, to which the national oil company owed N16.36tn as of December 2024, up sharply from N6.70tn a year earlier.

Similarly, NNPC Exploration and Production Limited was owed N4.02tn, down from N4.85tn in 2023, while smaller balances were recorded for NNPC Retail Limited (N10.95bn), NNPC HMO (N3.47bn), Antan Producing Limited (N7.20bn) and NNPC Gas Infrastructure Company Limited (N106.97bn).

The sharp rise in inter-company balances reflects lingering financial complexities arising from NNPCL’s transition from a state corporation to a limited liability company under the Petroleum Industry Act.

The swelling debts come amid the company’s renewed push to divest non-core assets, improve liquidity and attract external capital. NNPCL has repeatedly signalled plans to sell stakes in refineries, pipelines, power plants and other infrastructure assets to strengthen its balance sheet.

Recently, the company confirmed it was reviewing its asset portfolio to unlock value, reduce debt exposure and reposition itself as a commercially viable national oil company capable of competing globally.

Energy experts say resolving inter-company receivables and payables will be critical if NNPC is to execute its asset-sale plans successfully and reassure potential investors of its financial discipline.

Commenting, petroleum economist Prof Wumi Iledare said NNPC must begin operating as a true commercial holding company by enforcing strict settlement timelines among subsidiaries and ending the practice of allowing inter-company obligations to linger indefinitely.

He warned that the N30.3tn inter-company debts recorded in NNPC’s 2024 audited accounts point to deep-rooted structural and governance weaknesses, rather than outright insolvency.

In a personal note reacting to The PUNCH report titled “NNPC’s N30.3tn Debt, A Simple Way to See It from PEWI’s Lens,” Iledare said the scale and pace of the debt build-up should raise red flags, particularly as it represents a 70 per cent increase within a single year.

“The audited report showing N30.3tn in debts between NNPC and its subsidiaries should worry us, not because NNPC is ‘bankrupt,’ but because it exposes a deep structural problem.

“Most of this debt is NNPC owing itself. That usually happens when subsidiaries keep operating without paying for crude, products, or services, while losses are quietly carried forward. But a 70 per cent jump in one year is a clear warning sign. It means inefficiencies are growing faster than reforms.

“Only eight out of 32 subsidiaries being debt-free tells us this is not bad luck; it is weak commercial discipline,” he said.

Iledare stressed that the issue could not be dismissed as operational misfortune, noting that the solution lies in enforcing strict commercial rules rather than writing off debts.

“Even internal debt affects operations. Cash that should go into maintenance, investments and growth is tied down. Profitable units end up subsidising weak ones. Over time, accountability disappears, and performance suffers. The real fix is not debt forgiveness.

“NNPC must act like a true commercial holding company: enforce settlement timelines between subsidiaries, restructure or merge non-viable entities, clearly separate legacy pre-PIA debts from new obligations, and hold subsidiary CEOs accountable for cash flow and profitability,” he added.

He concluded that the rising inter-company debt burden represents a defining moment for the restructured national oil company.

“Bottom line: this debt is a governance test, not just an accounting number. If tolerated, it will recreate the old NNPC problems under a new name. If confronted honestly, it can become the turning point toward a truly profitable, PIA-compliant NNPC.”

Also commenting, the Chief Executive Officer of Petroleumprice.ng, Jeremiah Olatide, said the 70 per cent increase from 2023 reflects “financial recklessness” within the national oil company. “The N30.3tn debt owed by NNPCL and its subsidiaries is quite alarming,” Olatide told The PUNCH.

“A 70 per cent increase from 2023 represents financial recklessness. This debt burden could have a largely negative impact on the company’s operations, given that 25 out of 33 subsidiaries are in debt.

“If not for the intervention of the Federal Government to cancel $1.42bn in legacy debts to ease financial pressure—which is commendable—NNPCL management would be under even greater strain. However, the cycle of debt must be urgently addressed, as it will be detrimental to future operations,” he said.

Olatide added that a strong debt-management framework is essential for NNPCL’s sustainability. “Going forward, proper debt management and restructuring, combined with regular audits and transparent reporting, will enhance accountability and help mitigate the recycling of debts within the group,” he said.

Meanwhile, NNPC’s borrowings more than doubled in 2024, rising from N55.7bn in 2023 to N122.8bn, according to the company’s audited financial statements. The increase, driven largely by new loan arrangements and accrued interest, reflects efforts to fund strategic projects such as the Gwagwalada Independent Power Project.

The report showed that the company added N44.36bn in new borrowings during the year, alongside N1.69bn in interest and an exchange adjustment of N4.02bn, bringing total borrowings to N122.76bn as of December 31, 2024.

Of this amount, N70.56bn was classified as current borrowings, while N52.20bn was non-current, highlighting repayment obligations extending beyond 12 months.

According to the report, loan facilities were extended by NNPC E&P Limited and The Wheel Insurance Company to fund the Gwagwalada IPP. NNPC E&P disbursed N92bn in 2023, repayable over four years with a one-year moratorium on principal repayment, while The Wheel Insurance provided N46bn in 2024, repayable over one year with a six-month moratorium. Interest on both facilities accrues at 30-day Term SOFR plus a four per cent margin, with an additional liquidity premium applied to the NNPC E&P loan.

The report also indicated that the consolidated group reported no borrowings in both 2023 and 2024, suggesting that these liabilities are company-level obligations and do not reflect debt at the subsidiary or joint-venture level.

The surge in loans comes as NNPCL continues to manage complex inter-company debt dynamics, with subsidiaries owing the parent company N30.3tn as of 2024, raising further questions about internal cash management and the financial sustainability of certain units within the group.

admin by — January 5, 2026 in Business 0
Dangote pumps 43 million litres, denies petrol shutdown

DANGOTE REFINERYOfficials of the the Dangote Petroleum Refinery have said that the plant pumped 43.3 million litres of Premium Motor Spirit (petrol) into the Nigerian market on Saturday.

They exclusively disclosed this to our correspondent, debunking claims that the refinery had shut down its petrol processing unit for maintenance.

The officials, who preferred not to be named due to a lack of authorisation to speak on the matter, explained that some marketers were only looking for excuses to increase petrol gantry prices, which the refinery crashed from N828 to N699 per litre.

Over the weekend, there were reports that some depots raised petrol prices above N800 per litre, on claims that the Dangote refinery had shut its petrol u

But an official of the $20bn plant queried the plan by depot operators to increase petrol prices.

Asked if the refinery had been undergoing a maintenance downtime that could trigger a price hike, the source replied, “False! Have we stopped loading or turned back a single truck that has come to load? Yesterday (Saturday) alone, we loaded 43.30 million litres of PMS.”

The source said this was “about 50 per cent more than the actual daily (petrol) consumption of Nigeria”.

Another official told The PUNCH that the company has enough fuel in its tanks to serve the country for the next 20 days, saying this was to allay any fear of supply disruptions or fuel scarcity. “We have a stock which is more than 20 days of Nigerian consumption,” the source stated.

The official expressed concerns that some traders were hiking prices to create tension in the sector, urging Nigerians to patronise filling stations selling Dangote products. “The public should go only to filling stations where our products are sold. They will get whatever they require there,” he stated.

The PUNCH reports that private depots across Lagos and other key fuel trading hubs have increased the ex-depot price of PMS to as high as N800 per litre over the claim that Dangote had shut down its petrol unit.

According to petroleumprice.ng on Saturday, the average cost of petrol at private depots increased within 48 hours, creating concerns over a possible spike in retail pump prices. While the Dangote refinery said it sells petrol at N699 per litre, other depot prices jumped above N800.

Eterna and Integrated depots raised petrol prices to N800 per litre on Friday, compared with N726 per litre at Shellplux and AIPEC earlier in the week, indicating a jump of N74 per litre within two days. Similarly, Aiteo and Lister depots sold petrol at N780 per litre, up from the N750–N760 band recorded on Wednesday.

The impact was more pronounced in Warri, one of the country’s key petroleum logistics hubs. While Matrix Energy and other major depots sold petrol at N800 per litre on Wednesday, prices climbed to as high as N805 per litre by Friday, according to the report.

Marketers were said to have linked the price surge to a “shutdown of the petrol unit at the Dangote refinery”, which is currently a major domestic supplier of PMS, helping to moderate prices following the removal of fuel subsidies.

In December, the Dangote refinery reduced its petrol gantry price from N828 to N699 per litre. The refinery shocked depot owners and marketers when it slashed the gantry price of petrol by N129, causing them to incur losses running into billions of naira.

During a briefing, the President of the Dangote Group, Aliko Dangote, vowed to enforce the new price regime, with MRS selling petrol at N739 nationwide.

The PUNCH reports that as more MRS filling stations in Lagos and Ogun states joined in dispensing petrol produced by the Dangote Petroleum Refinery at N739 per litre, motorists started boycotting retail outlets that sold the product at higher prices.

This compelled other stations to lower their petrol prices, selling at an amount that is far below their cost of purchase.

Meanwhile, as marketers said they were losing billions of naira, Dangote replied that he was also losing money. Findings by The PUNCH showed that petrol importers might lose as much as N102.48bn monthly following the Dangote refinery’s reduction in gantry price.

At the same time, the refinery is projected to lose about N91bn in a month as a direct consequence of the price cut. But Aliko Dangote said he would prefer losing money to allowing petrol imports to thrive.

Analysts noted that the price uptick is a deliberate move by importers to make up for the losses suffered when Dangote slashed petrol prices. However, this may not be achieved, as the refinery ruled out any imminent supply disruptions.

admin by — January 5, 2026 in Business 0