Business
Dangote refinery: Crude supply crisis threatens oil investments, operators warn FG
The domestic crude oil supply crisis that recently led to accusations and denials in the oil sector may warrant an investment plunge in the industry, operators declared on Wednesday.
According to operators at the Lagos Chamber of Commerce and Industry, the crisis may damage the confidence of International Oil Companies and investors in refineries.
This came as a section of the 650,000-capacity Dangote Petroleum Refinery caught fire on Wednesday, sparking reactions on social media as videos of the incident went viral.
The management of the facility, however, allayed fears about the incident, as it stated that the situation had been put under control, adding that no one was harmed by the fire outbreak.
Meanwhile, the LCCI charged the Federal Government to prevent any form of blackmail and victimisation of IOCs and local refiners by quickly resolving the issues around oil supply contracts, higher crude cost in Nigeria above international prices, and the cost of logistics.
The Director-General, LCCI, Chinyere Almona, disclosed this while responding to enquiries by our correspondent on the views of IOCs concerning the recent accusations against them by a senior official of the Dangote Petroleum Refinery.
IOCs operating in Nigeria such as Shell, ExxonMobil, TotalEnergies, and Nigeria Agip Oil Company, among others, are under the Oil Producers Trade Section of the Lagos Chamber of Commerce and Industry.
This came as modular refinery operators demanded the intervention of the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, in the lingering domestic crude oil supply crisis.
“Since the issue around crude supply to the Dangote refinery and the IOCs, the chamber has consulted with some relevant parties. While these consultations continue, we call on the government, as the regulator, to provide a detailed report on what the key issues are and what it intends to do to resolve these issues.
“This is critical as uncertainties like this can be a disincentive to potential investors in the oil and gas sector. The regulatory agency (NUPRC) must show the capacity to resolve issues about protecting investors’ interests. The investors here are the Dangote refinery and the IOCs,” Almona stated.
Modular refiners are, of course, investors in the midstream arm of the oil and gas sector, as the LCCI DG had earlier told our correspondent that the chamber had championed calls for the provision of crude to operators in this space.
Continuing in her response on Wednesday to the recent crude supply concerns between IOCs and the Dangote refinery, she added, “Crude oil is an international commodity traded on open trade terms in the global markets.
“Still, we can resolve these issues to prevent any form of blackmail and victimisation of any party. The issues around supply contracts, higher prices above international crude prices, and the cost of logistics should be quickly resolved before they damage the confidence of investors in the sector.”
Also, the National Vice President of the Nigerian Association of Small-Scale Industrialists, Segun Kuti-George, said the battling with crude oil locally to boost production by Dangote Refineries would dampen investors’ confidence if it lingered.
He said, “This development will affect negatively. Our crude oil is being used in other countries, I am concerned about the situation where we export crude oil to other countries, yet we import refined products.
“It doesn’t make sense. Why can’t our refineries process the crude oil we produce? Instead, we’re exporting it to other nations, only to import refined products from them.
“It’s suspicious and seems like a game is being played. I hope this isn’t another case of inefficiency or lack of capacity. We need to get our refineries working to process our crude oil and reduce our reliance on imported refined products. We must address this issue, if we continue in this course, we can dampen investors’ confidence.”
IOCs urged
It was reported on Monday that the Vice President of Oil and Gas at Dangote Industries Limited, Devakumar Edwin, had accused International Oil Companies in Nigeria of plans to frustrate the survival of the new Dangote Petroleum Refinery.
Edwin had said the IOCs were deliberately and willfully frustrating the refinery’s efforts to buy local crude by hiking the cost above the market price, thereby forcing the refinery to import crude from countries as far as the United States, with its attendant high costs.
“Recall that the NUPRC recently met with crude oil producers as well as refineries owners in Nigeria, in a bid to ensure full adherence to Domestic Crude Oil Supply Obligations as enunciated under section 109(2) of the Petroleum Industry Act.
“It seems that the IOCs’ objective is to ensure that our petroleum refinery fails. It is either they are deliberately asking for a ridiculous/humongous premium or they simply state that crude is not available. At some point, we paid $6 over and above the market price. This has forced us to reduce our output as well as import crude from countries as far as the US, increasing our cost of production. It appears that the objective of the IOCs is to ensure that Nigeria remains a country which exports crude oil and imports refined petroleum products. They (IOCs) are keen on exporting the raw materials to their home countries, creating employment and wealth for their countries, adding to their Gross Domestic Product, and dumping the expensive refined products into Nigeria – thus making us to be dependent on imported products. It is the same strategy the multinationals have been adopting in every commodity, making Nigeria and Sub-Saharan Africa to be facing unemployment and poverty, while they create wealth for themselves at our expense.
“This is exploitation – pure and simple. Unfortunately, the country is also playing into their hands by continuing to issue import licences at the expense of our economy and at the cost of the health of the Nigerians who are exposed to carcinogenic products,” the Dangote refinery official had stated.
Edwin had also accused the Nigerian Midstream and Downstream Petroleum Regulatory Authority of granting licences indiscriminately to oil marketers to import dirty refined products into the country.
He had stated that even though Dangote was producing and bringing diesel into the market, complying with the regulations of the Economic Community of West African States, “licences are being issued, in large quantities, to traders who are buying the extremely high sulphur diesel from Russia and dumping it in the Nigerian market.”
But the Federal Government, on Tuesday, denied this claim, as it declared that there was no importation of dirty fuel into Nigeria, countering the position of the official Dangote refinery official.
The government declared this after meeting with oil marketers and local refiners of crude oil in Abuja, where parties at the meeting discussed issues pertaining refined products’ pricing, issues of competition and the importation of products that are produced in Nigeria.
The government spoke through the Nigerian Midstream and Downstream Petroleum Regulatory Authority, as it explained that refined petroleum products with high-sulphur contents were last imported in February, and that this had since been addressed by the regulator.
The Executive Director, Distribution Systems, Storage and Retailing Infrastructure, NMDPRA, Ogbugo Ukoha, disclosed this to journalists after the regulator concluded its meeting with the oil marketers and local crude oil refiners, which had officials from Dangote refinery and modular refineries.
“There is no dirty fuel that is being brought into Nigeria,” Ukoha had declared, when asked to react to the allegations leveled against the NMDPRA by a senior official of the Dangote refinery.
Negotiations necessary
To adequately tackle the crisis, the LCCI called for further negotiations among parties, noting that issues of crude oil pricing and supply contracts require thorough discussions by all players.
“We urge the government to remain close to the emerging issues around pricing and supply contracts among all parties to create an environment where the IOCs and all other parties can trade profitably together, create jobs, and generate revenue for the government,” the chamber’s DG stated.
Almona pointed out that “we can all learn from these teething issues to enrich our oil and gas sector regulation for better performance.”
She added, “We acknowledge the efforts made so far by the government in calling the IOCs to supply crude to the Dangote refinery, we add our voice to say both parties should consider coming to the table with their offers negotiated within international best practices and as moderated by the sector regulators.”
Modular refiners
On their part, operators of modular refineries stated that the Minister of Finance and Coordinating Minister for the Economy, Wale Edun, should intervene in the matter if the Presidency would not find the chance to do so.
They spoke to our correspondent through their umbrella association, the Crude Oil Refinery Owners Association of Nigeria, while reacting to Dangote’s recent revelation on the crude oil supply matter.
CORAN is a registered association of modular and conventional refinery companies in Nigeria. Modular refineries are simplified refineries that require significantly less capital investment than traditional full-scale refineries.
The Publicity Secretary, CORAN, Eche Idoko, said, “The chairman of CORAN was at ChannelsTV yesterday (Tuesday) to discuss the statement by Dangote that the IOCs are frustrating his refinery and by extension other local refineries. While we acknowledge the efforts of NMDPRA and NUPRC, they can only push within the ambit of the law and their enabling status.
“The issue as it stands requires the Federal Government, at least through the Coordinating Minister of the Economy and Minister of Finance if the Presidency is not available to react. This matter fundamentally bothers on the government’s fiscal policy directions.
We need to know clearly from the government where they lean on.
“Is it to achieve self-sufficiency concerning in-country refining or to continue the regime of fuel importation and holding onto the coat-tails of the foreign traders and their goons in Nigeria who have continued to stifle the growth in the mid and downstream segment of our petroleum industry?”
Idoko said the private sector saw the challenge in the oil sector and “took a bold step in the interest of the country to sink huge investments in the sector.
“The least we would want from this government and its economic team is to also take the same bold steps and stand unambiguously behind those who have taken the risk to invest here. This will be at least in keeping with one of their campaign promises.”
The association urged all the stakeholders in the oil sector to put the interest of Nigerians first and work towards alienating the sufferings of the citizenry.
“The government must not allow itself to be blackmailed, hoodwinked or bullied into pursuing an agenda that will benefit the foreign trading mafias and their agents in Nigeria at the expense of the suffering masses. Rather they should seize this opportunity to build synergy with emerging local investors within the refining space to build a vibrant and resilient refined petroleum products’ trading hub in Nigeria that will not only benefit the country but the entire subregion,” the CORAN official stated.
Refinery fire
Also on Wednesday, a section of the 650,000-capacity Dangote refinery caught fire, sparking reactions on social media as videos of the incident went viral.
The incident, which came at a time when the Dangote Group was accusing some oil mafias of sabotage, generated tension among Nigerians, who feared that the fire might further delay the operations of the refinery which promised to start the supply of Premium Motor Spirit in July.
While the company has yet to state the root cause of the fire incident, one of our correspondents gathered that it must have been triggered by an electricity surge.
While confirming the incident, the Group Chief Branding & Communications Officer, Dangote Industries Limited, Anthony Chiejina, described the incident as minor.
Chiejina noted that the company had contained a minor fire that affected only the effluent treatment plant.
“We have swiftly contained a minor fire incident at our effluent treatment plant today, Wednesday, June 26,” he noted.
Chiejina also stressed that the refinery was still operating, and no injury or bodily harm was recorded due to the incident.
“There is no cause for alarm as the refinery is operating and there is no recorded injury or body harm to all our staff on duty,” he concluded.
Speaking with our correspondent, the Secretary of the Depot and Petroleum Products Marketers Association of Nigeria, Olufemi Adewole, commended the Dangote Group for acting swiftly to stop the fire from spreading to other parts of the refinery.
Adewale said he might not be able to make comments on the incident, but empathised with the company.
“I will not be able to comment on the incident. I will just say we empathise with them, and it is a good thing they were able to put out the fire swiftly.
“It started as an accident from everything we read, probably some people started perceiving smells of burning cable. Anything could have happened at any point in time, but the good thing is that their safety crew were on top of it and were able to put it off. So, I think they did a very good job. We empathise with them, and they’ve done a good job,” Adewole said.
Giving a piece of advice, Adewole said industry players should continue to work towards safety to avoid accidents.
“Safety is not an accident. Safety is something that we all are working towards to ensure that we avoid accidents. The less of accidents we have in our various depots and refineries, the better for us,” he stated.
Our correspondent reminded Adewole that a fire incident happened at the Honeywell depot in Apapa in May, asking what was being done to stop the fire from becoming a trend and the need to put safety discussions on the front burner.
Adewole replied, “It is not a trend at all. When you see a trend, you will know.”
The DAPPMAN secretary added, “Safety is already on the front burner for everybody. I can assure you of that. Our depots do their monthly fire drills to keep themselves on top of every situation so that they can always counter any fire, any accident or any incident promptly.
“It is really good that the refinery was able to curtail the fire the way they did and that simply tells us that they know what they are doing. They are on top of their game.”
Lagos govt
Meanwhile, the Lagos State Fire and Rescue Service said it was unaware of the incident.
The Director of Public Affairs of the Lagos State Fire and Rescue Service, Amodu Shakiru, disclosed this to our correspondent in a telephone conversation.
Shakiru said neither its area office in Lekki nor the headquarters got a distress call from the Dangote refinery.
In the past few days, the Dangote refinery has been in the news for accusing international oil companies of denying it access to crude oil.
Source: The Punch
Bokku Mart, the Nigerian grocery store, has come under heavy criticism on social media after posting what users described as a “tribalistic” advertisement video.
The video, which has since been deleted, featured influencer Defolah comparing the store’s prices to those in local markets.
In the clip, she made a remark implying that Igbo traders cheat their customers.
“So you mean I can get beans and garri Ijebu at Bokku without any Omo Igbo cheating me?” the content creator said.
“It’s so relaxing to shop without someone pulling you from the left and right, shouting my colour.”
The comment triggered widespread outrage online, with several users accusing Bokku of promoting ethnic bias and disrespecting the Igbo community.
Following the backlash, Defolah issued a public apology, saying her statement was not intended to promote tribalism.
“I sincerely apologize. It was never my intention to promote any form of tribal bias or disrespect to the Igbo people,” she said.
Despite her apology, Bokku has continued to attract criticism on social media, with many users vowing to boycott its stores.
One user wrote: “Bokku Mart posted an advert insulting Igbos with slurs. Any Igbo who still patronizes them is an enemy of their tribe”.
“Do you know how brazen the Igbophobia is for a brand to endorse such? It’s like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves,” another user added.
@firstladyship argued the store’s marketing strategy was “lazy and divisive”.
“By engaging in stereotyping by calling another tribe ‘cheaters,’ you reduced your business to another ethnocentric brand in existence to service just a section of the country,” she wrote.
Another user said: If you’re an Igbo person and you give your money to Bokku so they can use it and run ads to call us cheats, then you have yourself to blame.”
See more reactions below:
“Do you know how brazen the Igbophobia is for a brand to endorse such? It’s like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves,” another user added.
I’m not going to let this Bokku thing go because I’ve been so tired of being gas lit. Do you know how brazen the Igbophobia is for a brand to endorse such? It’s like ShopRite doing an Ad in Nigeria and letting their influencer call Nigerians thieves.
It’s not just to delete the…
— CHIKAMMA (@AlexVivyNnabue) October 28, 2025
@firstladyship argued the store’s marketing strategy was “lazy and divisive”.
“By engaging in stereotyping by calling another tribe ‘cheaters,’ you reduced your business to another ethnocentric brand in existence to service just a section of the country,” she wrote.
Another user said: If you’re an Igbo person and you give your money to Bokku so they can use it and run ads to call us cheats, then you have yourself to blame.”
You all asking, this is the now deleted ad @bokkumart posted.
Deleting it without any apologies is a no!Same time people are claiming Igbo importers are the reason for the expensive products in the market Bokku mart subtly saying Igbo traders cheat.
Make it make sense? pic.twitter.com/8gVtjzdFpw— Ugegbe ✨ (@MarinatedTurks) October 28, 2025
The Bureau De Change (BDC) operators have lamented that they are close to going out of operations as most of its members are struggling to stay afloat and meet up with overhead expenses.
These licensed currency traders have attributed this mainly to the suspension of dollar allocation by the Central Bank of Nigeria (CBN) to the BDCs, as they struggle to have access to foreign exchange from the official window.
The operators lamented that with the huge drop in income level, paying staff salaries, office rent, licenses and other compliance expenses has become a major challenge.
This is further compounded by the uncertainty in the retail sub-sector of the forex market, with many of the BDC operators still battling to meet up with the recapitalization and license processes.
The BDC operators had always advocated for increased participation and involvement in the foreign exchange market to help sustain the success of the various policies being implemented by the CBN and help provide more liquidity.
This push by the BDCs followed the June 2023 unification of all segments of Nigeria’s foreign exchange market, consolidating all windows into one. This action by the apex bank was part of a series of immediate changes aimed at improving liquidity and stability in the Nigerian Foreign Exchange (FX) Market.
The currency traders had advised the CBN to always leverage the BDCs and allow them access to banks’ autonomous window and agencies of international money transfer operators.
The CBN had in July 2021 stopped the sale of forex to BDC operators across the country, accusing them of becoming conduit for illegal financial flows, working with corrupt people to conduct money laundering in Nigeria.
In February 2024, the apex bank announced the resumption of forex sales to the BDCs following the revocation of operational licenses of over 4,173 of these licensed currency traders over their failure to comply with some regulatory guidelines. This was to help enhance liquidity in the retail segment of the forex market.
However, the CBN has since stopped the sales of forex to the licensed currency traders with little or no intervention till date. The BDC operators, who said that the CBN could not sustain the exercise, however, noted that they are `engaged in positive discussion with the apex bank for the return of their active participation in the BDCs in the retail end of the forex market.
Customers now prefer to use IMTOs
In an exclusive chat with Nairametrics, a BDC operator, Abubakar Ardo, said that most of them are barely managing to stay in business, as the non-sale of forex directly to the BDCs has affected their operations badly.
Apart from the challenge of getting forex from the official window, Ardo explained that the demand for forex has dropped sharply as most customers now prefer to do transfers or use online platforms or International Money Transfer Operator (IMTOs) instead of physical cash exchanges.
He said, ‘’Honestly, things have been extremely tough for us lately. Most operators are just managing to stay afloat. Since the CBN stopped selling forex directly to us, our operations have been badly affected. We used to depend largely on the official window to get foreign exchange at regulated rates, but that avenue has been shut for a long time.
‘’Right now, survival depends mostly on what we can get from walk-in customers — people coming in to sell small amounts of dollars, pounds, or euros. But that’s not structured or steady. Sometimes, you can go days without a single serious transaction. The market is very dislocated, and demand has dropped sharply because most people now prefer to do transfers or use online platforms or IMTOs instead of physical cash exchanges.
‘’This may be good for the Naira, but sincerely, many of us are suffering. That’s why we’re proposing we get fully integrated.
‘’Meeting up with overhead costs has become a major challenge. Office rent, staff salaries, licenses, and other compliance expenses are still there, but the income isn’t coming in as before. As I talk with you, many operators have either closed shop temporarily or reduced their workforce just to cut costs.’’
He insisted that they are basically operating in survival mode — trying to keep their licenses active and hoping that the CBN will eventually re-integrate BDCs into the official market.
Going extinct
Making his own contribution, the President of the Association of Bureau Dec Change Operators of Nigeria (ABCON), Aminu Gwadebe, pointed out that the majority of its members are struggling to meet up with their overhead expenses, with their operations almost going extinct.
He said, ‘’The market is stable. As patriotic citizens, we align with policies that strengthen our sovereignty, which is the naira and commend both the regulatory and fiscal authorities on the naira stability and elimination of the exchange rate spikes.
‘’Our operations are currently near extinction, with the majority of our members struggling to meet up with overhead expenses. There is an ongoing positive collaboration between the CBN and the operators on the return of active participation of the BDCs in the retail end of the FX market.
‘’The BDCs, over time, remained the most potent tool of the CBN’s foreign exchange policy transmission mechanism. The majority of us are comatose as survival is largely dependent on the official foreign exchange market, which is not accessible to the BDCs, with only very few grappling with dislocated and unstructured walk-in customers.’’
Gwadebe noted that the CBN discontinued the sales of forex to BDCs a long time ago, with little or no intervention to date.
The Federal Government has successfully obtained N700 billion to install 1.1 million meters by December 2025, paving the way for a transformative upgrade in our power infrastructure.
The Minister of Power, Adebayo Adelabu, announced this on Tuesday in Lagos at the 2025 Nigerian Energy Forum (NEF), themed “Powering Nigeria through Investment, Innovation, and Partnership”, according to the News Agency of Nigeria (NAN).
According to the minister, the initiative is part of the Presidential Metering Initiative (PMI), a comprehensive plan to close Nigeria’s metering gap, strengthen revenue assurance, and promote transparency in the electricity supply chain.
He said the PMI complements the 3.2 million meters being procured through the World Bank’s Distribution Sector Recovery Programme (DISREP), positioning the country to bridge the metering gap within five years.
FG leveraging on bilateral funding to attract investment
The minister added that the government was leveraging bilateral funding and development finance to attract private investment and expand electricity access in underserved communities, schools, hospitals, and public institutions.
“In the past two years, more than $2 billion has been mobilised through key programmes, including the World Bank’s DARES, NSIA’s RIPLE, and the JICA fund.
“These interventions are accelerating renewable energy deployment and access to reliable power,” he said.
Adelabu also revealed that agreements signed at the 2025 Nigerian Renewable Energy Innovation Forum would add nearly four gigawatts of solar manufacturing capacity annually, about 80 per cent of Nigeria’s current generation capacity.
“With this level of renewable energy production, Nigeria is on track to meet its domestic transition targets and serve regional power markets,” he said.
Adelabu said the Electricity Act 2023 had transformed the sector by empowering states to establish subnational electricity markets.
“Fifteen states have received regulatory autonomy, with one fully operational.
“We’re ensuring alignment between wholesale and retail markets,” Adebayo noted.
He maintained that tariff reforms had improved supply reliability, reduced industrial energy costs, and boosted sector revenue from N1 trillion in 2023 to N1.7 trillion in 2024, with projections to exceed N2 trillion by 2025.
The minister added that President Bola Tinubu had approved a N4 trillion bond to settle verified debts owed to generation companies and gas suppliers, alongside a targeted subsidy plan to protect vulnerable consumers.
Adelabu reaffirmed the government’s commitment to partnering with the private sector to unlock stranded generation capacity and build a sustainable power future.
“Through sustained investment, innovation, and strong partnerships, we can power Nigeria’s journey toward a brighter, more resilient energy future,” he said.
In mid-October, the Nigerian Electricity Regulatory Commission (NERC) approved the disbursement of N28 billion to electricity distribution companies (DisCos) for the procurement and installation of prepaid meters under the Meter Acquisition Fund (MAF) Tranche B scheme.
According to Order No: NERC/2025/107 published on the commission’s website, the MAF provides a financial mechanism for accelerating meter rollout to unmetered customers at no cost, while ensuring a credible revenue stream that supports long-term financing for DisCos.
NERC also reported that DisCos installed a total of 225,631 meters in the second quarter of 2025, marking a 20.55% increase compared to the 187,161 meters installed in the first quarter of the year.
According to NERC’s Second Quarter 2025 Report, of the total meters installed, 147,823 units (65.52%) were deployed under the Meter Asset Provider (MAP) framework, 65,315 meters under the Meter Acquisition Fund (MAF) scheme, 12,259 meters through the Vendor Financed framework, and 234 meters were installed under the DisCo Financed scheme.
Despite this progress, NERC noted that as of June 2025, only 6,422,933 out of the 11,821,194 active registered customers in the Nigerian Electricity Supply Industry (NESI) had been metered. This translates to a national metering rate of 54.33%, leaving nearly half of electricity consumers still unmetered and subject to estimated billing.
Nairametrics
Armed officers of the Nigeria Police Force (NPF) on Tuesday sealed the headquarters of Nestoil Limited in Victoria Island, Lagos.
The action followed a Federal High Court order that froze the company’s assets, bank accounts, and shares over an alleged debt of $1.01 billion and N430 billion owed to FBNQuest Merchant Bank Limited and First Trustees Limited, both subsidiaries of First Bank of Nigeria Limited, according to a report by Premium Times.
Videos seen by Nairametrics showed police personnel surrounding the company’s premises, with a marking on the wall reading “Possession taken by court.”
The enforcement followed a Mareva injunction granted by Justice D. I. Dipeolu of the Federal High Court, Lagos Division, on October 22, 2025, authorising the takeover of assets belonging to Nestoil Limited, its affiliate Neconde Energy Limited, and their promoters, Ernest and Nnenna Azudialu-Obiejesi, across more than 20 financial institutions in Nigeria.
Breakdown of the debt and court order
Court filings showed that the defendants’ total indebtedness stood at $1,012,608,386.91 and N430,014,064,380.77 as of September 30, 2025. The credit facilities were extended to Nestoil Limited, Neconde Energy Limited, and their related entities under the Obijackson Group, secured by assets, shares, and oil field interests.
Justice Dipeolu appointed Abubakar Sulu-Gambari (SAN) as receiver-manager, authorising him to take over Nestoil’s offices at 41/42 Akin Adesola Street, Victoria Island, and any other identified assets within Nigeria.
The order also directed security agencies, including the Nigeria Police Force, Nigerian Navy, and State Security Service (SSS), to assist in enforcing the takeover and securing the company’s premises.
Further enforcement and next hearing
The injunction empowered the receiver to assume control of Neconde Energy’s stake in Oil Mining Lease (OML) 42, jointly operated with the Nigerian National Petroleum Company Limited (NNPCL) and its subsidiaries. The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) and NNPCL were instructed to grant the receiver access to manage production and revenue flows from the oil block.
The court also directed all affected financial institutions to disclose, under oath, details of funds or investments belonging to Nestoil and its affiliates within seven days of being served the order.
The case was adjourned to November 7, 2025, for the hearing of the substantive motion on notice.
A Nigerian tribunal sitting in Lagos has ordered General Hydrocarbons Limited (GHL) to pay First Bank of Nigeria Limited (FirstBank) $112,100 and N111 million as costs over a dispute related to Oil Mining Lease (OML) 120, according to Nairametrics.
Justice Kumai Bayang Akaahs gave the order on Tuesday while ruling on a Notice of Arbitration filed by GHL against First Bank.
Justice Akaahs held that GHL failed to substantiate its claims against First Bank regarding the alleged “absolute obligation” of the bank to fund the optimal exploration, development, and production of OML 120 under a purported Subrogation Agreement dated May 29, 2021.
Facts of the Proceedings
Arbitration documents seen by Nairametrics revealed that GHL and First Bank entered into a Subrogation Agreement (SA) dated May 29, 2021, to establish a working arrangement for the financing and profitable development of OML 120.
The agreement was intended to ensure the payment of financial obligations associated with exploration and production activities, as well as to support the business objectives of the parties involved.
GHL later accused the bank of breaching the agreement and subsequently approached the tribunal for redress.
GHL’s lead counsel, Paul Usoro, SAN, urged the tribunal to declare that the Subrogation Agreement imposed an “absolute obligation on First Bank” to fund the optimal exploration, development, and production of OML 120 to facilitate agreed payments.
In addition, Usoro and his legal team sought orders restraining the bank from publishing that GHL was indebted to it in the sum of US$718 million.
They also requested that the tribunal compel First Bank to pay GHL £1,350,000, $14,433,222.38, and N5.2 billion, among other claims, as refunds for amounts allegedly spent on third-party contractors due to the bank’s purported failure to meet its funding obligations under the Subrogation Agreement.
On its part, the bank’s legal team, led by Prof. Gbolahan Elias, SAN, and Babajide Koku, SAN, argued that the relevant clauses of the Subrogation Agreement clearly showed that there was no absolute, unqualified, or unconditional obligation on the bank to fund GHL.
They contended that GHL’s position contradicted global best practices and the Prudential Guidelines for Deposit Money Banks in Nigeria issued by the Central Bank of Nigeria (CBN) in August 2019.
They further emphasized that the agreement merely established a traditional lender–borrower relationship between the parties and that the bank had not underfunded the OML 120 development project.
What the Tribunal Said
In his verdict, Justice Akaahs held that while Clause 2(b) of the agreement stipulates that First Bank has a contractual obligation to finance the development, operation, and optimal exploration and production of OML 120, such an obligation “is not absolute.”
The tribunal found that, in line with the bank’s conditional funding obligation under the agreement, First Bank had advanced several loans to GHL, totaling US$185 million, at various times between June 25, 2021, and January 4, 2024. These included:
US$10,000,000 (Ten Million US Dollars)
US$110,000,000 (One Hundred and Ten Million US Dollars)
US$40,000,000 (Forty Million US Dollars)
US$25,000,000 (Twenty-Five Million US Dollars)
Justice Akaahs agreed with the bank’s argument that it was entitled to review, evaluate, and approve each funding request from GHL.
“As earlier found in this award, the respondent did not fail, delay, or breach its obligations under the Subrogation Agreement. The respondent’s funding obligation is conditional. The respondent has so far provided funding to the claimant in the cumulative sum of $185,000,000 (One Hundred and Eighty-Five Million US Dollars),” Akaahs ruled.
He further held that the bank was not responsible for any losses or unproductive time allegedly suffered by GHL.
Consequently, the tribunal ordered GHL to pay First Bank $112,100 and N111 million as total costs.
The tribunal also held that should GHL fail to remit the total sum within the specified thirty (30) days, the outstanding amount shall accrue simple interest at the rate of 10% (ten per cent) per annum from the date immediately following the expiry of the 30-day compliance period until the date of full and final payment.
Recall that the Court of Appeal had, in September 2025, allowed an appeal filed by First Bank of Nigeria, setting aside an earlier decision of the Federal High Court in Port Harcourt in its OML-linked case against GHL, a company linked to media entrepreneur Nduka Obiagbena.
The appellate court reportedly upheld arguments advanced by the bank’s legal team, led by Babajide Koku (SAN) and Victor Ogude (SAN), that proceeds from the sale of crude oil cargo aboard the FPSO Tamara Tokoni had been improperly diverted.
Nigerians are breathing a sigh of relief as the naira shows notable recovery against major currencies like the US dollar, British pound, and euro.
With this strengthening of the naira, many are hopeful that it could usher in a more stable financial climate and enhance the purchasing power of everyday Nigerians.
The strong performance comes as the Financial Action Task Force (FATF) formally announced Nigeria’s removal from the list of jurisdictions under increased monitoring, known as the “grey list”, following a successful on-site evaluation of reforms implemented across the financial system.
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Data from the Central Bank of Nigeria (CBN) shows that the naira has appreciated against the dollar to N1,455.50, a significant rise compared to the N1,630 per dollar recorded in July.
Naira also improved against the pound and euro, exchanging at N1,946.5 per pound and N1,696 per euro, respectively.
In the parallel market, checks by Legit.ng confirmed a similar trend. The naira exchanged between N1,482 and N1,492 per dollar, down from N1,520 recorded earlier in the week.
The pound also weakened to around N2,000, while the euro fell to N1,720. Abubakar Musa, a trader, told Legit.ng “The market is in favour of naira in the last few days. There is more forex in the market, reason we are selling pound below N2,000 exchange rate.”
CFA: N2.59
Yuan/Renminbi: N204.70
Danish Krona: N227.04
Euro: N1,696.33
Yen: N9.54
Riyal: N388.77
South African Rand: N84.43
Swiss Franc: N1,834.83
Pound Sterling: N1,946.52
US Dollar: N1,457.96
In February 2023, the FATF, a financial crimes watchdog based in France, placed Nigeria on the grey list.
The message from the global community was clear: the nation needed more vigorous enforcement, better coordination, and greater transparency.
The removal of Nigeria from the grey list showed that the country has made progress in strengthening its anti-money laundering and counter-terrorism financing framework.
Bismarck Rewane, CEO of Financial Derivatives Company, said that the removal of Nigeria from the grey list means a whole lot, noting it will boost the naira. Also, Tayo Oviosu, CEO of Paga, said: “This is a big deal because it opens up the country for FDI and engagement from the West, especially.”
The CBN also welcomed the FATF decision reinforces the broader restoration of global confidence in Nigeria’s economic management.
Source: MyNigeria
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