As crude prices crashed below $80 per barrel on Tuesday, the Dangote Petroleum Refinery reduced the ex-depot prices of Premium Motor Spirit (petrol) and Automotive Gas Oil (diesel), saying it was part of efforts to make petroleum products more affordable.

Under the new pricing structure, the refinery reduced the price of petrol from N1,215 per litre to N1,165, representing a N50 reduction, while diesel was cut from N1,650 per litre to N1,570, amounting to an N80 reduction.

The price of Brent crude, the global benchmark for oil prices, fell by almost five per cent to below $80 per barrel on Tuesday following growing hopes of an agreement between the United States and Iran to reopen the Strait of Hormuz.

The decline came after senior US officials said talks with Iran had made progress, raising the prospect that commercial shipping through the key waterway could resume as soon as this week.

A senior Gulf official said there is a “50-50” chance Iran will reach a deal on the Strait of Hormuz by Friday.

Reflecting the drop in crude oil prices from a high of $100 per barrel last week to $79, the Dangote Group said in a statement on Wednesday that the price review was aimed at enhancing energy affordability, improving access to refined petroleum products, and supporting economic activities across Nigeria.

According to the refinery, the move reflects its commitment to providing “affordable, high-quality petroleum products to the Nigerian market.” It added that it remained committed to ensuring stable supply while leveraging operational efficiencies to deliver value to consumers, businesses, and stakeholders.

The company said it would continue to pass on the benefits of improved operational efficiencies to consumers whenever market conditions permit.

It stated that the refinery continues to play a pivotal role in strengthening Nigeria’s energy security, reducing reliance on imports, and supporting the nation’s economic development through the supply of world-class petroleum products.

“Dangote Petroleum Refinery has announced a reduction in the ex-depot prices of Premium Motor Spirit (PMS) and Automotive Gas Oil (Diesel), reaffirming its commitment to providing affordable, high-quality petroleum products to the Nigerian market.

“Under the new pricing structure, the refinery has reduced the ex-depot price of PMS to N1,165 per litre, down from N1,215 per litre, representing a reduction of N50 per litre. Similarly, the ex-depot price of Diesel has been reduced to N1,570 per litre from N1,650 per litre, amounting to a decrease of N80 per litre.

“The price review reflects Dangote Refinery’s ongoing efforts to enhance energy affordability, improve access to refined petroleum products, and support economic activities across Nigeria,” the statement read partly.

As Africa’s largest refinery, Dangote reaffirmed its dedication to contributing to the growth of the Nigerian economy and passing on the benefits of improved operational efficiencies to consumers whenever market conditions permit.

With the new price reduction, petrol is expected to retail at between N1,200 and N1,250 per litre. However, this depends on the location and other logistics.

Meanwhile, Iran and Oman were said to have agreed on the geographical coordinates of a proposed safe shipping route for commercial vessels in the Strait of Hormuz, Iranian Foreign Ministry spokesperson Esmaeil Baghaei said on Wednesday.

CNN reports that the two countries have held talks over the past two months covering the technical, legal, security, and environmental aspects of the proposed route, Baghaei said in response to questions about the talks.

Baghaei described the negotiations as “professional” and “progressing,” adding that a joint statement setting out the main points of agreement is being reviewed and finalised.

“Provided that certain third parties do not obstruct the process, the joint statement of the two countries, including the principal considerations and points of agreement, is also in the final stage of review and drafting,” he was quoted as saying.

Seplat Energy is expected to complete the sale of a 10 per cent working interest in its joint venture with the Nigerian National Petroleum Company Limited by December, with the transaction expected to reshape the energy firm’s production profile and reserves.

The company disclosed this in an update obtained by The PUNCH on the proposed disposal of Seplat’s interest in the NNPCL/SEPNU Joint Venture for a headline transaction value of approximately $281.6m.

Seplat said its subsidiaries, Seplat Energy Offshore Limited and Seplat Energy Producing Nigeria Unlimited, had signed a legally binding Heads of Agreement with NNPC Limited for the transaction.

The deal is subject to applicable regulatory approvals and other customary conditions, with completion expected in the second half of 2026, meaning the completion is expected between October and December.

Following completion, SEPNU’s working interest in the joint venture assets will fall from 40 per cent to 30 per cent, while NNPC Limited’s interest will increase from 60 per cent to 70 per cent.

Despite the reduction in its stake, Seplat said it would continue to own 100 per cent of SEPNU, which will remain the operator of the joint venture.

“Following completion of the transaction, SEPNU will retain a 30 per cent working interest in the joint venture assets and will continue as Operator. NNPC Limited’s working interest in the JV will increase from 60 per cent to 70 per cent. Seplat Energy will continue to own 100 per cent of the share capital of SEPNU,” Seplat said.

Seplat disclosed that the commercial terms of the $281.6m transaction represent approximately 25 per cent of the gross transaction consideration it paid, together with any contingent consideration payable by SEOL, for its acquisition of SEPNU.

In simple terms, the company is saying that the $281.6m it expects to receive from selling the 10 per cent JV interest is equivalent to about one-quarter of the total consideration it paid to acquire SEPNU, including any additional payment that could become due under the acquisition agreement.

It was shown that the transaction would have a direct impact on Seplat’s attributable production.

The company explained that SEPNU currently represents approximately 80,000 barrels of oil equivalent per day at the midpoint of its 2026 group production guidance of between 135,000 barrels of oil equivalent per day and 155,000 boepd.

With the transaction effective from 1 April 2026, that contribution will fall to approximately 65,000 boepd.

Seplat stated that its production guidance would be updated upon completion of the transaction.

The company’s 2030 production target will also be affected, falling from 200,000 boepd to 170,000 boepd on a net working-interest basis.

However, Seplat said the proceeds from the transaction and the lower capital expenditure associated with the divested interest would largely offset the net cash flow impact of the reduced working interest in the JV assets through 2030.

The transaction will also affect the company’s reserves position, as the disposal would result in group 2P reserves being adjusted down by approximately 13 per cent to 872.9 million barrels of oil equivalent.

It said an updated group 2P reserves figure would be provided following completion of the transaction.

Beyond the immediate impact on production and reserves, Seplat said the disposal would provide funds to support its capital allocation plans.

The company intends to use approximately 50 per cent of the proceeds to reduce debt and the remaining 50 per cent to enhance shareholder returns.

Subject to completion, approximately $140m, equivalent to 23.3 US cents per share, will be paid to shareholders as a cash dividend.

The payment will be made in addition to the underlying business performance dividend.

The company said $200m of its Advanced Payment Facility had already been repaid in the second quarter of 2026, while the remaining $100m would be paid after completion of the transaction.

It was added that the transaction would not change the NNPC/SEPNU JV production targets, which remain supported by production performance year-to-date.

Commenting on the transaction, Seplat Energy’s Chief Executive Officer, Roger Brown, said the joint venture remained strategically important to the company and Nigeria.

“The NNPC/SEPNU JV is one of the pre-eminent licence areas in Nigeria and of strategic importance to the country. Our relations with our partner, NNPC, are strong and we are fully aligned on the agreed work programmes. Together, we are focused on delivering significant value from the JV which has responded very well to increased development activity since we became operator and has clear potential to deliver strong production growth well into the next decade.”

The Nigeria Deposit Insurance Corporation has commenced the payment of insured deposits to customers of 46 failed microfinance banks whose operating licences were revoked by the Central Bank of Nigeria, while intensifying loan recoveries and asset sales to reimburse depositors with balances above the insured limit.

Managing Director and Chief Executive Officer of the NDIC, Thompson Sunday, disclosed this on Wednesday in Lagos during a retreat for members of the House of Representatives Committee on Insurance and Actuarial Matters.

Speaking on the sidelines of the event, Sunday said the corporation moved swiftly to begin liquidation after the CBN revoked the licences of the affected MFBs and appointed the NDIC as provisional liquidator.

“We’ve started paying depositors of those banks, and gradually, we intend to cover all the insured depositors,” he said.

According to him, the NDIC is also pursuing debtors of the failed institutions and disposing of their assets to generate funds for the payment of uninsured deposits.

“Our function as liquidator involves paying the guaranteed sums. Thereafter, we go after those owing the institutions and ensure that available assets are sold to realise funds for settling the uninsured portions of deposits,” Sunday said.

He said the corporation had overhauled its reimbursement process through a partnership with the Nigeria Inter-Bank Settlement System, enabling automatic payments to depositors through their Bank Verification Number.

Under the arrangement, depositors with linked BVNs receive payments directly into their accounts in other banks without filing claims, thereby reducing delays in accessing insured funds.

Sunday said the same approach had accelerated payments to depositors of Heritage Bank, where about 700,000 customers have already received their insured deposits since the lender’s licence was revoked.

He, however, noted that some Heritage Bank depositors were yet to be traced because the bank inherited customer accounts from legacy institutions, including Enterprise Bank, Spring Bank and Guardian Express Bank, many of which predated the BVN system.

“There are depositors that we have not been able to trace, and this is an opportunity for them to come forward. Once they do, we will pay them,” he said.

He added that proceeds from loan recoveries and the sale of assets belonging to failed banks would be used to settle depositors whose balances exceeded the insured limit.

Sunday also said the recent banking sector recapitalisation had strengthened lenders’ ability to support economic growth but stressed that stronger capital must be complemented by effective supervision, sound corporate governance and robust risk management to safeguard financial stability.