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OPEC to impose quota on Nigeria as Oil Producers mull cuts extension to rebalance market

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…As US supporting development in Nigeria’s agric sector – USAID Director***

Oil producers are expected to unanimously extend a production cut accord later this month but its duration is being discussed, the UAE energy minister said on Monday.

“I think this group of committed and responsible producers came together… and I think they will continue to do what it takes to take us to the next level,” United Arab Emirates Energy Minister Suheil al-Mazrouei told an international oil conference in Abu Dhabi.

He said 158 million barrels of surplus crude oil remain on the market and “we need to reduce that — which means there is a potential for extension”.

Mazrouei said there was near-unanimity among the 24 OPEC and non-OPEC producers which agreed a year ago to cut output by 1.8 million barrels per day.

He added that he had “not heard anyone” speak of allowing the extension to expire, although the duration of the new extension would be “subject to discussion”.

“I am hopeful that we will reach an agreement that will lead to more stabilisation in the market and more investments coming to the market,” he said.

As a result of the cuts, oil prices have rebounded to more than $64 a barrel from $40 a year ago, and huge stocks of crude built up over the past three years have reduced.

Mazrouei, whose government is OPEC’s fourth largest oil producer, said he was not happy with the sharp fluctuations in prices, saying they need to be more stable.

OPEC ministers are holding a crucial meeting in Vienna at the end of November to discuss extending the cuts deal as well as imposing the quota system on countries that have so far been exempted: Libya, Iran and Nigeria.

Cartel kingpin Saudi Arabia and the world’s top producer Russia have voiced support for a rollover to the deal, the duration of which remains up for debate.

In the meantime, the United States is supporting Nigeria to develop its agriculture sector into a more diversified, inclusive and dynamic driver of economic development, the U.S. Agency for International Development (USAID) has said.

Roseann Casey, the USAID/Nigeria Director of Economic Growth and Environment, said this in a statement signed by Jana T. Sweeny, the Development Outreach and Communications Specialist (DOC), and made available to newsmen on Monday in Lagos.

Casey said in pursuit of the objective, USAID/Nigeria recently hosted two-day workshops between Sept. 26 and Oct 11, in Lagos, Kano, and Abuja.

She explained that the results from the consultative workshops would inform a new food security country plan for Nigeria.

“The U.S. Agency for International Development (USAID) convened a broad spectrum of agricultural stakeholders to develop a shared vision for development of the sector under the U.S. government’s new Global Food Security Strategy.

“The U.S. Global Food Security Act authorizes a comprehensive, strategic approach for U.S. foreign assistance to reduce global poverty, hunger, and malnutrition in 12 target countries, including Nigeria.

“In two-day workshops held in Lagos, Kano, and Abuja from September 26 to October 11, some 180 participants examined the past, present, and future of agricultural and nutrition developments in the country,’’ she said.

The USAID/Nigeria director said that the workshops identified common objectives, and developed action plans to develop agriculture in Nigeria under the new strategy.

She said that representatives came from academia, community-based organisations, non-governmental organizations, financial institutions, value chain actors, agriculture and nutrition-related associations, government agencies, donor agencies, and media.

“With these workshops, the United States has demonstrated its commitment to helping to develop agriculture into a more diversified, inclusive and dynamic driver of economic development in Nigeria,” Casey said.

The participants, she said, discussed key issues including access to finance for farmers and other value chain actors, particularly women and youth.

The director added that discussions addressed the need to strengthen market systems and value chains and improve access to agricultural inputs and training for farmers.

Casey said that the participants also highlighted the importance of making healthy and nutritious food available and accessible, especially for lactating and pregnant mothers, and children.

Additional report from Punch

Economy

IFC Invests $50m In Lagos Free Zone To Support Nigeria’s Industrial Growth

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IFC Invests $50m In Lagos Free Zone To Support Nigeria’s Industrial Growth

 The International Finance Corporation (IFC) has announced an equity investment of 50 million dollars in the Lagos Free Zone Company (LFZ) to support Nigeria’s industrial growth and economic diversification.

Dahlia Khalifa, IFC Regional Director, Central Africa and Anglophone West Africa, made this known at an official signing on Friday in Lagos.

Khalifa said the investment was to support the development and expansion of Nigeria’s first deep sea port based in the Lagos Free Zone.

She noted the investment was designed to address critical infrastructure gaps, attract local and global businesses, and contribute to Nigeria’s economic diversification agenda.

The IFC director stated that the funds would support the first phase of the 860-hectare Lagos Free Zone, focusing on land development, industrial facilities, and logistics infrastructure.

She noted that the facility owned by Tolaram, a diversified multinational group with operations across Africa, Asia, and Europe, would provide an integrated industrial ecosystem.

This, she said, would drive efficient import and export operations, serving as a gateway for Nigeria’s integration into global value chains.

Khalifa noted that with Nigeria’s economy projected to grow by 3.7 per cent by 2026, investments in infrastructure were vital to ensuring sustainable growth.

“When fully occupied, Lagos Free Zone is expected to create approximately 30,000 direct, indirect, and induced jobs, while contributing significantly to Nigeria’s Gross Domestic Product (GDP) upon completion.

“This investment reflects IFC’s commitment to fostering inclusive economic growth and sustainable development in Nigeria.

“Lagos Free Zone is poised to become a transformative hub for industrial activity, driving job creation and enhancing Nigeria’s competitiveness in global markets.

“We are proud to partner with Lagos Free Zone in building the infrastructure necessary to attract global and local businesses, enabling Nigeria to achieve its full economic potential,” she said.

Khalifa added that the investment in Lagos Free Zone also reflected IFC’s commitment to sustainable development, with a focus on green infrastructure.

She noted that approximately 15 per cent of the investment was earmarked for climate-related initiatives, including Excellence in Design for Greater Efficiencies (EDGE)-certified buildings and climate-resilient infrastructure.

Commenting, Adesuwa Ladoja, Managing Director, Lagos Free Zone Company, noted that IFC’s support represented a positive recognition of the vision to establish Lagos Free Zone as a world-class industrial hub.

She said the investment allowed the company to scale up existing infrastructure to attract more foreign and local tenants while promoting sustainability and creating economic opportunities for Nigeria.

Ladoja said the Lagos Free Zone integrated with Lekki Deep Sea Port, facilitated ease of doing business in Nigeria and supports the Federal Government’s drive for economic diversification.

“We look forward to driving growth and delivering lasting impact through this transformative collaboration with the IFC.

“This investment aligns with Nigeria’s ongoing economic reforms and IFC’s strategic frameworks which prioritise economic diversification, development of competitive clusters, and investments in climate-resilient infrastructure.

“By addressing infrastructure bottlenecks and enhancing connectivity, IFC’s investment in Lagos Free Zone will unlock new opportunities for businesses and strengthen Nigeria’s position as a regional economic leader,” Ladoja said.

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Court To Hear NNPCL’s Objection Against Dangote Refinery Feb. 5

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Court To Hear NNPCL’s Objection Against Dangote Refinery Feb. 5

…As Court admits Sowore to N10m Bail over Alleged Cybercrime

A Federal High Court in Abuja on Thursday, fixed Feb 5 to hear the Nigeria National Petroleum Company Limited (NNPCL)’s preliminary objection against a suit filed by Dangote Petroleum Refinery and Petrochemicals FZE over an oil import licence dispute.

A Federal High Court in Abuja also on Thursday, admitted Omoyele Sowore, the 2023 Presidential candidate of the African Action Congress (AAC) to bail in the sum of N10 million with one surety in the like sum.

Justice Inyang Ekwo fixed the date after counsel to Dangote Refinery, George Ibrahim, SAN, told the court that they were yet to file their response to the NNPCL’s objection.

When the matter was called, Ibrahim informed the court that the matter was slated for a hearing of their motion for amendment of the originating summons.

He said the application, dated Nov. 25, sought one relief.

The lawyer said the application sought an order granting leave to amend the name of the 2nd defendant in the suit from Nigeria National Petroleum Corporation Limited to Nigeria National Petroleum Company Limited.

He said though NNPCL had served them with a counter affidavit opposing the motion for amendment, the lawyer said they responded on points of law.

“We urge your lordship to discountenance the submission of 2nd defendant,” he said, citing a previous court decision to back his argument.

But NNPCL’s lawyer, Ademola Abimbola, SAN, disagreed with Ibrahim’s submission.

Abimbola argued that besides that Dangote had not furnished them with the previous court judgment cited by their lawyer, he said they filed a counter affidavit of seven paragraphs on Jan. 24 in opposition to the application.

“We rely on all the said paragraphs and Exhibit A, including a written address in urging my lord to dismiss the plaintiff’s application,” he said.

The lawyer said their contention in the case was that the court cannot grant the application to amend because before they filed it, they had already filed their preliminary objection, seeking the dismissal of the suit.

He argued that the Supreme Court had decided on this as a classic example of an application that ought to be dismissed because until their preliminary objection is determined, the motion to amend cannot be determined.

Abimbola said if the motion to amend is determined, it will overreach their preliminary objection.

When Justice Ekwo then asked Abimbola if he was ready to move their preliminary objection, the lawyer responded in the affirmative.

But Ibrahim quickly interjected, saying they were yet to file their response to the NNPCL’s objection.

He, however, sought a two-hour stand-down to enable him to file a formal application.

Responding, Abimbola submitted that instead of Dangote responding to their preliminary objection, the refinery was busy filing a motion to amend their originating summons.

After listening to their arguments, Justice Ekwo adjourned until Feb. 5 for hearing of the NNPCL’s objection.

The judge, who ordered Dangote Refinery to file its response within two days of the order, directed the NNPCL to also file its response within a day upon being served if there is any need.

Matthew Bukar, SAN, appeared for the 1st defendant; Ahmed Raji, SAN, represented the 3rd, 4th and 7th defendants; and Divine Okoro appeared for the 5th and 6th defendants respectively.

Meanwhile, Olanrewaju Oshinaike, informed the court that he appeared for the Federal Competition and Consumer Protection Commission (FCCPC) as a party seeking to be joined in the suit.

NAN reports that Dangote Refinery had sued the Nigeria Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) and Nigeria National Petroleum Corporation Limited (NNPCL) as 1st and 2nd defendants.

Also joined in the suit are AYM Shafa Limited, A. A. Rano Limited, T. Time Petroleum Limited, 2015 Petroleum Limited, and Matrix Petroleum Services Limited.

The oil company, through its lawyer, Ogwu Onoja, SAN, prayed the court to nullify import licences issued by NMDPRA to the NNPCL and the five other companies to import refined petroleum products.

The company (plaintiff) also prayed the court to declare that NMDPRA violated Sections 317(8) and (9) of the Petroleum Industry Act (PIA) by issuing licenses for the importation of petroleum products.

It stated that such licenses should only be issued in circumstances where there is a petroleum product shortfall.

It equally sought N100 billion in damages against NMDPRA for allegedly continuing to issue import licences to NNPCL and the five companies for importing petroleum products, among other reliefs.

But NMDPRA, in its counter affidavit deposed to by Idris Musa, a Senior Regulatory Officer in the office, prayed the court to dismiss the suit as it was misconceived, unmeritorious and incompetent.

Musa argued that Dangote Refinery is not entitled to any of the reliefs sought.

The official, in the application dated and filed Dec. 13, 2024, said the current production of Dangote Refinery is yet to meet the national daily petroleum products sufficiency requirement.

He said that based on this and in compliance with Section 317 [9] of the PIA (Petroleum Industry Act), NMDPRA issued licences to import petroleum products to bridge product shortfalls to companies with good track records of international products trading.

Besides, he said the agency is also mandated to promote competition and prevent abuse of dominant market positions and unhealthy monopolies in the oil and gas sector.

He denied the allegation that NMDPRA is partaking in any purported “grand conspiracy and concerted efforts” against the refinery, describing it as “an allegation for which the plaintiff has provided no facts or evidence in support.”

The NNPCL, in its preliminary objection dated and filed Nov. 15, 2024, also prayed the court to strike out the case for being incompetent.

The NNPCL argued that the suit was premature and it disclosed no cause of action against it.

“This honourable court lacks the jurisdiction to hear this suit,” the NNPCL said.

In the affidavit in support of the application deposed to by Isiaka Popoola, a clerk in the law firm of Afe Babalola & Co, counsel to the NNPCL, he said one of their lawyers, Esther Longe who perused Dangote’s originating summons, affidavit and written address told him that an examination of the processes showed that NNPC as sued by the refinery was non-existent entity.

Popoola averred that the court lacked jurisdiction over the 2nd defendant who sued Nigeria National Petroleum Corporation Limited (NNPCL).

“A simple search on the CAC website shows that there is no entity called “Nigeria National Petroleum Corporation Limited (NNPC).”

According to Popoola, the 2nd defendant/objector is not the same as the 2nd defendant sued by the plaintiff.

He urged the court to dismiss the suit.

Also, the oil marketers, in a joint counter affidavit filed on Nov. 5, 2024, told the court that granting Dangote’s application would spell doom for the country’s oil sector.

According to them, the plan to monopolise the oil sector is a recipe for disaster in the country.

The three marketers; AYM Shafa Limited, A. A. Rano Limited and Matrix Petroleum Services Limited, in their response, said the plaintiff did not produce adequate petroleum products for the daily consumption of Nigerians.

Besides, they argued that there was nothing placed before the court to prove the contrary.

In another development, a Federal High Court in Abuja on Thursday admitted Omoyele Sowore, the 2023 Presidential candidate of the African Action Congress (AAC) to bail in the sum of N10 million with one surety in the like sum.

Justice Musa Liman, in a ruling on Sowore’s bail application moved by his lawyer, Marshall Abubakar, held that the surety must be a responsible citizen with a landed property within the jurisdiction of the court.

Justice Liman, who directed the surety and Sowore to deposit their international passports, said the surety must depose to an affidavit of means.

He held that an accused person is entitled to bail unless there are compelling reasons to deny it.

The judge observed that the police argued that Sowore had cronies within and outside Nigeria who could allegedly interfere with the trial.

However, the judge ruled that the police failed to prove how Sowore could intimidate high-ranking police officers who would testify in the case.

He further stated that the prosecution did not establish any link between Sowore and the purported cronies.

The judge concluded that the applicant deserved his personal liberty pending the outcome of the trial.

“If the applicant desires to jump bail, it is to his peril,” the judge said.

He equally observed that the police had previously granted Sowore an administrative bail.

“Bail is accordingly granted to the applicant in the sum of N10 million with one surety in like sum,” the judge ruled.

The judge also held that the surety must submit an affidavit of means and title documents of the landed property in the Federal Capital Territory (FCT), which must be verified by the court registrar, along with a valid means of identification.

After the ruling, Sowore’s lawyer, Abubakar requested that his client be released to his legal team pending the fulfilment of the bail conditions within a few hours.

The judge granted Sowore a 24-hour extension to remain with his lawyers.

He adjourned the matter until April for trial.

It was reported that Sowore, the Convener of the #RevolutionNow Protest, was arraigned on Wednesday on allegations bordering on cybercrime offences.

He, however, pleaded not guilty to the 16-count amended charge preferred against him by the Inspector-General (I-G) of Police, Mr Kayode Egbetokun.

The I-G had, in the amended charge marked: FHC/ABJ/CR/23/2025, named Sowore as sole defendant.

In count three, the police alleged that Sowore, on Dec. 20, 2024, through his X handle, called Egbetokun, “the illegal IG of Nigeria Police Force.”

He was also alleged to have posted the picture of Egbetokun on his X handle with the caption: “Mediocrity, incompetence, corruption, a country run by characterless people can not make progress.”

The police also alleged that Sowore, through his X handle, said, “IGP Kayode Egbetokun will destroy the Nigeria police if we don’t act now.”

After he pleaded not guilty to all the counts, his lawyer, Abubakar, moved his bail application and it was opposed by the I-G’s counsel, M.U. Jonathan.

Justice Liman later adjourned the ruling on the bail application until today.

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FAAC: FG, States, LGs Share N1.424 trn December 2024 Revenue

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FAAC: FG, States, LGs Share N1.424 trn December 2024 Revenue

A total sum of N 1.424 trillion, being Dec. 2024 Federation Account Revenue has been shared to the Federal Government, states, and the Local Government Councils (LGCs).

This is according to a statement by Bawa Mokwa, Director, Press and Public Relations, Office of the Accountant General of the Federation (OAGF).

Mokwa said that the revenue was shared at the January Federation Account Allocation Committee (FAAC) meeting on Friday in Abuja.

Meanwhile, a communiqué from the FAAC meeting said that the N1.424 trillion total revenue comprised statutory revenue of N386.124 billion, and Value Added Tax (VAT) revenue of N604.872 billion.

It also comprised Electronic Money Transfer Levy (EMTL) revenue of N31.211 billion and Exchange Difference revenue of N402.714 billion.

The communiqué indicated that a total gross revenue of N2.310 trillion was available in Dec. 2024.

It said that the total deduction for the cost of collection was N84.780 billion while total transfers, interventions, and refunds were N801.175 billion.

“Gross statutory revenue of N1.226 trillion was received for Dec. 2024. This was lower than the sum of N1.827 trillion received in Nov. 2024 by N600.988 billion.

“Gross revenue of N649.561 billion was available from VAT in Dec. 2024. This was higher than the N628.973 billion available in Nov. 2024 by N20.588 billion,” it said.

The communiqué said that from the N1.424 trillion total distributable revenue, the Federal Government received the total sum of N451.193 billion, while the state governments received the sum of N498.498 billion.

It said that the LGCs received N361.754 billion, and a total sum of N113.477 billion (13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.

“On the N386.124 billion statutory revenue, the Federal Government received N167.690 billion, and the state governments received N85.055 billion.

“The LGCs received N65.574 billion, and the sum of N67.806 billion (13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.

“From the N604.872 billion VAT revenue, the Federal Government received N90.731 billion, the state governments received N302.436 billion and the LGCs received N211.705 billion,” it said.

It further said that a total sum of N4.682 billion was received by the Federal Government from the N31.211 billion EMTL.

It said that the state governments received N15.605 billion, and the LGCs received N10.924 billion.

“From the N402.714 billion Exchange Difference revenue, the communiqué said that the Federal Government received N188.090 billion, and the state governments received N95.402 billion.

It said that the LGCs received N73.551 billion, while the sum of N45.671 billion (13 per cent of mineral revenue) was shared with the benefiting states as derivation revenue.

It said that in Dec. 2024, VAT and EMTL increased significantly while Oil and Gas royalty, CET levies, excise duty, import duty, petroleum profit tax and companies income tax decreased considerably.

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