Africa’s economic growth has been predicted to slow slightly to 4.2 per cent in 2026 before returning to 4.4 per cent in 2027, matching the level recorded in 2025, says African Development Bank (AfDB) .

The is according to the Banks forecasts which appeared in the 2026 edition of the African Economic Outlook report presented during its annual meetings in Brazzaville.

According to the AfDB, the expected slowdown in 2026 mainly reflects the impact of the conflict in the Middle East on the global economy.

“The impact of this shock on growth and macroeconomic stability will depend on the duration of the supply chain disruptions and their effects on global energy and fertilizer prices,” the report said.

East Africa is expected to remain the continent’s fastest-growing region, despite a slowdown from 6.6% in 2025 to 5.9% in 2026. The AfDB links the weaker pace to logistics disruptions and higher energy costs.

West Africa should maintain relatively stable growth around 4.7%, supported by agriculture, infrastructure investment and continued expansion in the mining and oil sectors. In North Africa, growth is expected to slow to 4% in 2026 as higher energy costs and weaker tourist arrivals from Gulf countries affect economic activity.

Central Africa’s economy should grow by 3.8% in 2026, mainly supported by sustained commodity prices, especially oil. Southern Africa is expected to remain the continent’s weakest-performing region, with growth limited to 2.1% because of supply chain disruptions and the broader economic effects of the Middle East conflict.

The AfDB expects average inflation across Africa to reach 10.4% in 2026, driven mainly by higher global oil and gas prices. Even so, that level would remain below the 13.7% recorded in 2025.

The continent’s average fiscal deficit should narrow slightly to 4.8% of GDP in 2026. The report also points to temporary stabilization in external balances, but warns that rising energy and fertilizer prices could widen current account deficits again. The institution also highlighted risks linked to lower development aid and possible pressure on migrant remittances.

The AfDB said African economies continue to face a difficult international environment marked by rising trade tensions, climate shocks, lower foreign investment, geopolitical fragmentation and the lingering effects of the COVID-19 pandemic.

The institution also cited the uncertain consequences of the conflict in the Middle East, which continue to affect global markets and supply chains. To help economies absorb external shocks, the AfDB called on governments to strengthen coordination between monetary and fiscal policy, improve social support measures and avoid broad fuel subsidies.

“African central banks need to implement prudent monetary and exchange rate policies tailored to anchor long-term inflation expectations,” the institution said.

The bank added that central banks and finance ministries should act quickly to limit second-round effects linked to rising food and energy prices. The AfDB also urged countries to accelerate investment in renewable energy, regional infrastructure and industrial transformation in order to reduce dependence on imports. The institution called for deeper implementation of the African Continental Free Trade Area (AfCFTA), broader tax bases and stronger African financial systems.

The Bank stressed the need for greater economic sovereignty through stronger domestic resource mobilization, the development of African financial institutions and deeper regional integration. The AfDB’s forecasts broadly match projections published earlier this year by the United Nations Conference on Trade and Development (UNCTAD), which expects Africa’s economy to grow by 4% in 2026 and 4.1% in 2027, compared with 3.9% in 2025.

According to UNCTAD, the improvement should come from stronger macroeconomic stability, higher investment levels and firmer domestic demand.

The Dangote refinery in a sustainable growth movement has hit full capacity at a critical moment. Within weeks of reaching 650,000 barrels/day in February, the African producer was shipping record quantities of diesel and jet fuel to countries cut off from Middle Eastern supply.

Sustaining current run rates demands another order of trading sophistication, testing the limits of Dangote’s logistics, said David Bird, who left OQ8, owner of Oman’s Duqm refinery, in 2025 to become the company’s first CEO.

Bird has a three-year deadline to expand the Nigerian refineryto become the largest in the world. But first, cementing its role as a global heavyweight depends on feedstock diversification, securing offtake commitments and fixing supply chain bottlenecks, he told Platts in an interview at the refinery. Platts is part of S&P Global Energy.

“This is not a traditional refinery in an oil-producing country that just sits on the end of a crude pipeline and processes one crude,” Bird said. “This is a fully merchant refining model that you could see in Europe or Asia.”

Dangote transformed Nigeria’s fuel sector when it launched in 2024, but its output was capped at around 450,000 b/d during a gradual ramp-up punctuated by repeated outages on its main gasoline-producing unit. Since reaching 650,000 b/d in February, the refinery has remained at close to full capacity.

After the Middle East war began, Dangote shifted to “max jet mode,” and in April it became the world’s single largest exporter of aviation fuel, according to S&P Global Commodities at Sea data.

The refinery is also producing 200% of its gasoline potential by importing blending components like GTL naphtha and Bonny condensate, Bird said. As such, it can “comfortably” make 75 million liters/day (about 650,000 b/d), and could do 100 million l/d with better storage infrastructure, he added.

Other projects will further diversify the feedstock coming into Dangote. In addition to a new linear alkylbenzene plant and diesel hydrotreater, the company is planning to build a new 750,000 metric ton/year propane dehydrogenation plant, which will process imported LPG and convert it into polypropylene.

The Dangote model was designed to process the light sweet crude native to OPEC member Nigeria, but has been challenged by what the refinery says is a lack of local supply and poor terminal reliability.

Dangote can now refine 40 different types of crude, but Bird would like to see the number get closer to the 130 used at Singapore’s Pulau Bukom refinery, which he ran between 2012 and 2015, he said.

Dangote’s $10 billion expansion project will make the refinery capable of processing 1.4 million b/d, equivalent to 90% of Nigeria’s oil output forcing it to seek new crude streams. It has so far relied on US WTI Midland crude to supplement local supply, but as it scales up, it can incorporate heavier grades and residues, Bird said.

“We will be in the crude blending game,” he said. “So you can easily imagine at 1.4 million b/d we could process 30% Middle Eastern grades on each train.”

In an interview before the Middle East war began, founder Aliko Dangote said his business was eyeing crudes from countries like the UAE, and would consider Russian oil should sanctions be lifted. The refinery already has competitive operating costs of under $2.50/b, but the number could drop to $1.50/b post-expansion, he said. South American residues are also being considered, according to Bird.

In time, the company hopes to stimulate regional demand with low-cost fuel. It is finalizing approvals for a Namibian tank farm, which it plans to connect to Zambia by pipeline, and is also discussing a Djibouti oil link and storage in Cameroon, according to Bird and Devakumar Edwin, Dangote’s vice president for oil and gas.

The refinery currently ships half of its production overseas and plans to export all additional product from its expansion to international markets, Edwin said in a separate interview at the site.

By design, the refinery lacks storage capacity.

“We normally try to avoid stocks in all of the businesses,” Edwin said, explaining a wider Dangote Group ethos of forcing salespersons to move product.

However, limited tankage space leaves little margin for error for operators facing “a tsunami of product coming down the pipe every day” and unpredictable truck demand, Bird said.

Consequently, the business is deviating from its existing spot model, managed mostly by international trading companies, to pursue more long-term purchasing commitments from governments, distributors and national oil companies.

“We’ll be making sure that we’re not the supplier of last resort,” Bird said. “We want to start building some of those direct offtake relationships.”

Dangote has had an influx of requests from African countries and a recent deal with Ethiopian Airlines, Bird said. In contrast to its first years, the refinery is better positioned to offer competitive credit and payment terms, he added.

The company is also tailoring its port infrastructure to support smaller cargoes and reduce dependence on truck-outs. After hitting constraints with its single-point mooring system, it is developing a four-berth marine jetty to accommodate LR2-size ships and below, Bird said.

The refinery expansion will involve “ruthless replication of the existing plant,” Bird said, partly to cut engineering time. Nevertheless, the second train will likely involve different catalyst choices to meet winter fuel-grade specifications in the Northern Hemisphere, which incur a heavy yield penalty with the current configuration, he said.

The project is being supported by an IPO later this year, which Dangote hopes will value the business at $50 billion. The company will list 5%-10% of its shares on the Nigerian stock exchange and is considering others, including London and Dubai.

According to Bird, the refinery is on the cusp of transforming the Lekki free zone, where it is located, into an industrial hub that could resemble some of the largest in the Middle East. “It will be a very brave person that underestimates Alhaji Aliko Dangote,” Bird said. “You come here in 10, 15 years, and this will look like Jebel Ali.”

MTN Nigeria has recorded an expanded network coverage to 93.7 per cent of the population, to support the country’s broadband penetration and digital inclusion in 2025.

According to the company’s just-released 2025 Sustainability Report, the company invested N2.7 billion in social-impact initiatives that reached more than 534,000 people.

The company attributed the improved coverage, up from 93% in 2024, to continued rollout of base stations across rural and underserved communities.

This included the deployment of 229 integrated renewable, solar-powered rural telephony sites under its Project Zero initiative. Broadband penetration across MTN’s network footprint reached 90.1%, while 4G population coverage remained stable at about 82%.

The Nigerian Communications Commission (NCC) says MTN Nigeria accounted for more than half of the country’s active GSM connections in 2025, serving approximately 89.64 million active mobile lines.

The CSR footprint of the company also expanded last year. MTN Foundation’s increased recipients rose to more than 534,000.

The programmes in 2025 spanned community infrastructure, maternal healthcare, youth empowerment and digital access. Under its STEM scholarship scheme, 300 students studying science and technology disciplines in public tertiary institutions received scholarships worth N300,000 annually through graduation.

The company also continued its Scholarship for Blind Students and Top-10 UTME Scholarship initiatives, while distributing more than 25,000 learning devices in partnership with state governments.

Another focus for the year was child online safety as MTN Nigeria’s ‘Help Children Be Children’ in response to growing concerns around online grooming and exposure to harmful digital content.

The initiative includes school sensitisation programmes, parental workshops and collaborations with civil society organisations.

Communication Strategy Workshop

On the flip side, the company disclosed that it spent more than NGN1 billion on infrastructure repairs and security interventions following 9,218 fibre cuts recorded nationwide during the year, incidents linked largely to vandalism and theft of telecoms assets

The Minister of State for Petroleum Resources (Oil), Hon. Senator Heineken Lokpobiri, has been confirmed as a featured speaker at African Energy Week (AEW) 2026, where he is expected to outline Nigeria’s accelerating upstream transformation and its expanding role as one of Africa’s leading oil and gas investment destinations.

Nigeria’s energy sector has recorded one of its strongest investment cycles in a decade, driven by regulatory reforms under the Petroleum Industry Act (PIA), improved fiscal incentives and renewed confidence from international oil companies (IOCs) and indigenous operators.

In 2025 alone, Nigeria approved 28 new Field Development Plans valued at $18.2 billion, unlocking an estimated 1.4 billion barrels of crude oil reserves, according to government disclosures. These approvals mark a decisive shift toward accelerating project execution timelines and reversing years of stalled upstream development.

Lokpobiri has consistently credited this momentum to reforms under the PIA, alongside faster licensing processes and investment-friendly fiscal adjustments. Speaking in Abuja earlier this year, he noted that Nigeria secured four of seven major Final Investment Decisions in Africa between 2024 and 2025, positioning the country as a leading upstream investment hub on the continent.

A central pillar of this resurgence is Shell’s Bonga deepwater complex, where the company has taken a $5 billion final investment decision on the Bonga North project, a subsea tie-back expected to add over 300 million barrels of recoverable resources and significantly boost long-term output from the FPSO hub. The development is widely viewed as a benchmark for Nigeria’s renewed deepwater competitiveness.

Meanwhile, ExxonMobil’s planned investment in the Usan deepwater oil field is expected to inject up to $1.5 billion between 2025 and 2027, supporting production revitalization through new drilling and infrastructure upgrades.

Alongside IOC-led expansion, Nigeria’s indigenous producers are increasingly central to near-term output growth, with Heirs Energies targeting up to 100,000 barrels per day as it ramps up development across its onshore Niger Delta portfolio, including OML 17. This momentum is complemented by Seplat Energy’s optimization of its expanded onshore portfolio following the ExxonMobil acquisition, reinforcing the growing role of local operators in stabilising production and driving Nigeria’s short-term output gains.

Lokpobiri is also expected to highlight Nigeria’s broader energy transition framework at AEW 2026, which seeks to balance oil production growth with gas monetization, domestic refining expansion and increased local content participation. His policy messaging has consistently emphasized that Nigeria’s oil and gas sector is structured to accommodate both IOCs and a growing base of indigenous operators.

“Nigeria is once again proving what is possible when policy meets execution,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “Under leaders like Heineken Lokpobiri, we are seeing renewed seriousness about production, investment and getting projects across the line – from deepwater developments to indigenous-led growth. This is exactly the kind of momentum Africa needs: not promises, but barrels, projects, and bankable deals.”

As AEW 2026 prepares to convene policymakers, investors, and operators from across Africa and beyond, Lokpobiri’s address is expected to serve as one of the defining policy moments of the conference – spotlighting Nigeria’s resurgence at the center of Africa’s upstream growth story and its ambition to convert recent investment momentum into sustained production gains.

The Nigerian capital market is set to transition to a T + 1 Settlement Cycle effective Monday, 1st June 2026, marking another significant milestone in the continued modernization of Nigeria’s post-trade infrastructure and market operations.

The transition, approved by the Securities and Exchange Commission (SEC) and being coordinated by the Central Securities Clearing System Plc (CSCS) alongside key capital market stakeholders, reflects the market’s collective commitment to strengthening efficiency, reducing settlement risk, enhancing liquidity, and aligning with global best practices.

Under the T + 1 settlement cycle framework, trades executed in the Nigerian capital market will settle one business day after the trade date, enabling faster movement of securities and funds across the market ecosystem.

Ahead of the go-live date, extensive stakeholder engagements, readiness assessments, and awareness initiatives have been conducted across the market to support a seamless transition. As part of the awareness and readiness assessment leading to the transition, CSCS hosted industry engagement webinars with Exchanges and Trade Associations to reinforce stakeholder alignment, operational preparedness, and market-wide coordination ahead of go-live.

Market participants across the capital market ecosystem have also continued to undertake system upgrades, operational testing, internal readiness activities ahead of the transition.

Commenting on the transition, Mr. Shehu Yahaya Shantali, the Managing Director/Chief Executive Officer of CSCS, stated:

“The transition to T+1 represents another important milestone in the evolution of Nigeria’s capital market infrastructure. It reflects the market’s readiness to embrace reforms that enhance efficiency, strengthen investor confidence, improve liquidity, and align Nigeria more closely with leading global market.”

He further noted:”The successful implementation of T + 1 is a product of extensive collaboration across the capital market ecosystem. We appreciate the commitment demonstrated by our regulator, Securities and Exchange Commission (SEC), Exchanges, Trade Associations, market operators and the T + 1 Implementation Plan Committee.”

The Securities and Exchange Commission (SEC) has also continued to emphasize the strategic importance of the transition as a part of broader efforts aimed at strengthening market competitiveness, ensure orderly, fair and efficient markets. The Commission highlighted that a shorter cycle signals discipline, infrastructure quality, and regulatory credibility.

To commemorate the official transition, CSCS in collaboration with the Nigerian Exchange Group (NGX) will host a Special Closing Gong ceremony on Monday, 1st June 2026 at the NGX House, Lagos.

The event will bring together regulars, market operators, Trade Associations and key stakeholders across the capital market ecosystem to formally mark the commencement of the T + 1 settlement cycle in Nigeria.

CSCS remains committed to driving innovation, operational resilience, and stakeholder collaboration as the Nigerian capital market progresses toward a more efficient, transparent, and globally competitive future.

Shareholders of Fidelity Bank Plc are excited with the Banks growth performance as the it recorded 37.9 per cent growth in gross earnings to N434.95 billion in first quarter 2026 as the international commercial bank continued to expand its core banking market share.

Interim report and accounts of Fidelity Bank for the three months ended March 31, 2026 released at the Nigerian Exchange (NGX) showed that gross earnings rose from N315.42 billion in first quarter 20025 to N434.95 billion in first quarter 2026, representing an increase of 37.9 per cent.

The performance was driven by impressive growth in the bank’s core business operations with interest incomes rising by 22.8 per cent to N314.48 billion in first quarter 2026 as against N256.10 billion in first quarter 2025.

With net interest income at N180.97 billion, the bank closed the period with profit before tax of N92.48 billion. After taxes, net profit stood at N74.47 billion for the three-month period. Earnings per share remained high at N5.69, underlining the capacity of the bank to reward its shareholders.

The balance sheet of the bank also emerged stronger. Total assets crossed the N11 trillion mark to N11.35 trillion by March 2026 compared with N10.46 trillion recorded in December 2025. Customers’ deposits increased from N6.89 trillion to N7.38 trillion. Total equity rode on the back of earnings growth to a 27.5 per cent increase from N1.09 trillion in December 2025 to N1.39 trillion by March 2026.

The first quarter 2026 results further consolidated the strong earnings outlook of the bank, which had successfully completed its recapitalisation amidst impressive earnings performance in 2025.

Fidelity Bank had recorded double-digit growths in interest and non-interest incomes as well as key balance sheet items during the year ended December 31, 2025.

The audited report showed that gross earnings rose from N1.04 trillion in 2024 to N1.52 trillion in 2025, an increase of 45.6 per cent. Interest and similar incomes had grown by 38.7 per cent from N803.1 billion in 2024 to N1.11 trillion in 2025. Fees and commission incomes also rose by 44.7 per cent from N78.4 billion to N113.4 billion. The bank recorded net profit after tax of N242.4 billion in 2025.

The bank’s balance sheet emerged stronger with total assets rising by 18.6 per cent to N10.46 trillion in 2025 as against N8.82 trillion in 2024. Customer deposits increased by 16.1 per cent from N5.94 trillion to N6.89 trillion, reflecting continued franchise strength and an improved funding profile. Net loans and advances meanwhile declined by 2.4 per cent to N4.28 trillion in 2025 as against N4.39 trillion in 2024, attributable to customers paying down on their mature obligations.

The bank had in 2025 strengthened its capital position, with eligible capital rising to N561 billion, above the regulatory minimum of N500 billion for banks with international authorisation. In addition, capital adequacy had remained robust, with Capital Adequacy Ratio of 30.94 per cent by December 2025 as against 23.47 per cent by December 2024.

Managing Director, Fidelity Bank Plc, Dr. Nneka Onyeali-Ikpe, said the first quarter 2026 results reinforced the bank’s strong and resilient business model.

She noted that with the remarkable success of its recapitalisation programme and continuing expansion, Fidelity Bank has entered a new era of growth and impressive returns.

“We are on a stronger footing and confident that we will set new growth records that are reflective of our legacy and the future we are working on,” Onyeali-Ikpe said.

Oil prices rebounded on Tuesday after the United States carried out what it described as defensive strikes in southern Iran, raising fresh concerns over the fragile ceasefire and ongoing peace talks between Washington and Tehran.

The strikes came amid expectations that both countries were nearing an agreement to end the three-month war and reopen the Strait of Hormuz for the free movement of oil shipments.

From about $97 per barrel on Monday, global benchmark Brent crude futures rose by roughly 3.5 per cent on Tuesday to around $100 per barrel.

According to reports, US forces struck missile-launch sites and other targets in southern Iran on Monday, even as the Donald Trump administration signalled that a peace agreement between the two sides could be close.

In a statement, the US Central Command said the attacks were defensive in nature. “US forces conducted self-defense strikes in southern Iran today to protect our troops from threats posed by Iranian forces. Targets included missile launch sites and Iranian boats attempting to emplace mines,” CENTCOM spokesman Capt. Tim Hawkins said.

Reacting, Iran accused the United States of violating the ceasefire with the strikes. Iran’s Foreign Ministry said the attacks in the southern Hormozgan province, where Iranian media reported explosions early on Tuesday, amounted to a “gross violation” of the fragile ceasefire that has been in place for nearly seven weeks, according to Reuters.

Both sides had earlier indicated progress on a memorandum of understanding that could halt the war and restore shipping activities through the Strait of Hormuz, while giving negotiators 60 days to address more contentious issues, including Iran’s nuclear programme.

Reports also indicated that Iranian negotiators had pushed for the proposed agreement to include the release of billions of dollars in frozen assets during talks held in Qatar.

The war, which began with US and Israeli strikes on Iran on February 28, has triggered a major oil supply shock, increasing the costs of fuel, fertiliser, and food globally. Iran had responded to the attacks by launching drones and missiles at Gulf states hosting US military bases.

Traffic through the Strait of Hormuz, which accounts for about one-fifth of global oil and liquefied natural gas trade, has remained significantly below normal levels since the conflict began.

Although diplomatic efforts are continuing, there are growing fears that the latest US strikes could further escalate tensions in the Middle East and disrupt global energy supplies.

No fewer than 89 firms listed on the Nigerian Exchange remitted a combined N579.78bn as company income tax in the first quarter of 2026, representing a 10.60 per cent increase from the N524.23bn paid in the corresponding period of 2025.

An analysis of the companies’ unaudited financial statements by The PUNCH showed that out of 143 companies listed on the main board of the NGX, about 89 firms recorded tax payments during the period under review, while 54 firms either reported zero tax obligations, delayed filings, or did not publish tax figures on the Exchange’s disclosure segment.

Across 11 business categories, companies under the Information and Communications Technology sector emerged as the biggest contributor to government tax receipts after paying N191.22bn in Q1 2026, up by 175.8 per cent from N69.32bn in Q1 2025. The N190.92bn tax charge recorded by MTN Nigeria Communications Plc resulted in the sharp increase.

The Industrial Goods sector followed with N151.31bn in taxes, rising by 18.9 per cent from N127.29bn, while oil and gas companies paid N177.61bn, though this represented a decline of 36.9 per cent from N281.25bn in the corresponding period of 2025 due largely to lower tax charges by Seplat Energy Plc.

Consumer goods firms remitted N62.69bn, representing a 73.8 per cent increase from N36.07bn, while financial services companies paid N56.69bn, up by 27.7 per cent from N44.38bn.

At the lower end of the spectrum, natural resources firms paid only N121.43m in taxes, down by 4.2 per cent year-on-year, while construction and real estate firms remitted N107.36m, representing a 51.8 per cent decline.

Sector leaders

Collectively, the top 10 corporate taxpayers in Q1 2026 were led by MTN Nigeria Communications Plc with N190.92bn from the ICT sector, followed by Seplat Energy Plc with N176.60bn from oil and gas.

Others were Dangote Cement Plc (N100.07bn), Guaranty Trust Holding Company Plc (N84.76bn), Ecobank Transnational Incorporated (N73.46bn), First HoldCo Plc (N53.26bn), Lafarge Africa Plc (N51.17bn), Stanbic IBTC Holdings Plc (N50.44bn), Access Holdings Plc (N49.07bn), and Zenith Bank Plc (N46.90bn).

Veritas Kapital Assurance Plc recorded the strongest year-on-year tax increase with a 746.6 per cent jump, followed by Sterling Financial Holdings Company Plc with 338.9 per cent, First HoldCo Plc with 179.1 per cent, AXA Mansard Insurance Plc with a 168.6 per cent swing in tax burden, and Presco Plc with 81.2 per cent growth.

On the other hand, firms with the sharpest tax declines included Eterna Plc with a 63.9 per cent drop, C & I Leasing Plc with 40.6 per cent, Consolidated Hallmark Holdings Plc with 35.1 per cent, Trans-Nationwide Express Plc with 33.5 per cent, and Red Star Express Plc with 28.7 per cent.

Among the biggest nominal taxpayers, MTN Nigeria, Seplat, Dangote Cement, GTCO, and Ecobank remained the five highest contributors overall, while firms such as Trans-Nationwide Express Plc, Premier Paints Plc, Tripple Gee and Company Plc, Juli Plc, and John Holt Plc recorded some of the smallest tax obligations during the period.

Analysts speak

In separate interviews with The PUNCH, market and investment analysts explained that profitability played a role in the effective tax rates of major firms and evaluated the role of the new tax laws, predicting their future impact on the finances of these firms.

Managing Director of Afrinvest Consulting, Abiodun Keripe, said the divergence in tax payments reflected profitability trends, sector-specific pressures, and tax incentives.

“The divergence in tax payments among these companies is largely tied to profitability patterns, sector-specific pressures, and the impact of tax incentives or deferred tax adjustments,” Keripe noted. “Companies such as Dangote Sugar Refinery Plc, Presco Plc, and Nestlé Nigeria Plc recorded stronger year-on-year tax expenses mainly because their earnings improved significantly during the period under review. In most cases, higher profitability naturally translates into higher income tax obligations for companies.”

The Afrinvest boss explained that stronger performers benefited from improved pricing power, exchange-rate gains, rising consumer demand, and better cost management.

This trend was evident in companies such as Dangote Sugar Refinery Plc, which increased its tax expense by 51.5 per cent to N1.54bn after returning from a N22.63bn pre-tax loss in Q1 2025 to a N20.69bn pre-tax profit in Q1 2026.

The company’s gross profit surged to N43.10bn from N9.26bn after the cost of sales declined sharply. Similarly, Presco Plc raised its tax payment by 81.2 per cent to N19.99bn after revenue rose to N100.86bn and finance income climbed sharply to N5.13bn.

Nestlé Nigeria Plc also recorded a 65.8 per cent increase in tax expense to N34.77bn as revenue expanded to N326.13bn and net finance costs narrowed substantially.

The ICT sector posted the strongest growth overall. Airtel Africa’s tax charge rose by 94.3 per cent year-on-year, while MTN Nigeria alone accounted for over 99 per cent of the sector’s total tax contributions.

Financial institutions also posted stronger tax remittances on the back of higher earnings. GTCO doubled its tax expense to N84.76bn, while First HoldCo increased its tax payment by 179.1 per cent to N53.26bn after profit before tax rose to N321.12bn.

Stanbic IBTC’s tax burden also rose following the introduction of a minimum tax component.

Meanwhile, Managing Partner at SBM Intelligence, Ikemesit Effiong, assessed that companies with lower tax obligations were largely battling margin pressure, weak demand, or deferred tax adjustments.

Speaking on factors determining firms’ varying remittances, Effiong said, “It appears to be driven by a mix of operational recovery, strategic cost management, and acute macroeconomic pressure. Companies that posted higher tax bills did so because their underlying profitability improved, largely through one-off gains or deep cost restructuring.”

He added, “Those with lower tax bills are generally experiencing margin compression, structural demand weakness, or aggressive tax planning, while Eterna’s sharp tax decline despite stronger earnings points to either the crystallisation of tax losses or a shift in deferred tax positions.”

That trend was visible in companies such as Beta Glass Plc, whose tax expense declined by 22.6 per cent to N4.04bn following weaker profitability, rising finance costs, and higher foreign exchange losses.

Eterna Plc also cut its tax charge by 63.9 per cent despite posting stronger profits, suggesting lower effective tax exposure and possible tax relief adjustments.

In the Services sector, Red Star Express, C & I Leasing, and Trans-Nationwide Express all recorded lower tax payments amid weaker profitability or reduced effective tax rates.

Several firms, including DAAR Communications Plc, Morison Industries Plc, and SCOA Nigeria Plc, recorded zero tax obligations because of accumulated losses, weak profitability, or tax-loss carry-forwards.

Lead economist and fixed income strategist at CardinalStone, Olaolu Boboye, said company-specific tax waivers, pioneer status, deferred tax adjustments, and transitions under the Petroleum Industry Act were influencing effective tax rates.

“We need to check, per company, what made some companies pay lower taxes. A company can be granted pioneer status, which means it pays lower taxes. Oil and gas companies transitioning under the PIA may also pay lower taxes compared to the old petroleum profit tax regime,” Boboye said.

SBM Intelligence’s Effiong added that while Nigeria’s new tax laws could reduce headline tax rates over time, most large firms should not expect a sharp drop in effective tax rates.

“The headline statutory rate is coming down, but most real-sector companies should not expect a clean, one-for-one reduction in their effective tax rate. For larger firms, the new laws deliver a lower nominal rate, but it is offset by new layers of taxation, including a development levy and a 15 per cent global minimum effective tax,” he said.

Afrinvest’s Keripe also noted that tax reforms were aimed more at broadening the tax base, improving compliance, and simplifying administration than aggressively reducing corporate tax obligations.

The Petroleum Products Retail Outlets Owners Association of Nigeria has said increased competition in the downstream petroleum sector forced the Dangote Petroleum Refinery to slash the ex-depot price of diesel by N200 per litre.

Checks on Petroleumprice.ng showed that the price of diesel dropped from N1,800 to N1,600.

The National Public Relations Officer of PETROAN, Dr Joseph Obele, disclosed the association’s position in a statement on Tuesday, describing the development as a clear indication that competition, not monopoly, would deliver lower fuel prices for Nigerians.

According to him, the refinery reduced the price of Automotive Gas Oil, popularly known as diesel, from N1,800 per litre to N1,600 per litre after fresh imported products entered the Nigerian market

Obele said, “The Dangote refinery recently took legal action after NMDPRA granted five import licences to marketers for the importation of petroleum products.

“Over the weekend, several of the vessels reportedly arrived, and today the refinery reduced the price of AGO, commonly known as diesel, by N200. The reduction is from N1,800 to N1,600,” he stated.

The PETROAN spokesman described the price cut as a direct consequence of market rivalry in the deregulated downstream sector. “This development is widely seen as a positive impact of increased competition in the downstream petroleum sector,” Obele said.

According to him, the latest reduction may have been strategically targeted at importers whose products were already en route to the country, “as the new selling price at the Dangote refinery is significantly lower than the landing cost of the importers”.

Obele maintained that the development further strengthened arguments against monopoly in the petroleum sector. “All hail competition and say no to monopoly in the petroleum industry. The more the competition, the better prices consumers will enjoy,” he added.

The development comes amid an ongoing legal dispute involving the Dangote refinery against the Attorney General of the Federation and the Nigerian National Petroleum Company Limited over fuel importation into Nigeria.

The refinery had approached the Federal High Court in Lagos to challenge the issuance of petroleum import licences by the Nigerian Midstream and Downstream Petroleum Regulatory Authority to some marketers and oil trading firms.

The Dangote refinery, in the suit, reportedly argued that the continued issuance of import permits was undermining local refining and discouraging investments in domestic petroleum production.

The refinery also maintained that Nigeria has sufficient local refining capacity to meet domestic demand and therefore questioned the justification for continued fuel imports.

But the Nigerian National Petroleum Company Limited told the Federal High Court in Lagos that petroleum products from the Dangote Petroleum Refinery and Petrochemicals FZE are sold at “significantly high and fluctuating market prices”, warning that granting the refinery’s requests could hand it monopoly control of Nigeria’s downstream petroleum sector.