Business
Petroleum Sector Retards National Progress
NNPCL is the only state-owned oil producing organization in the entire world which has become a perpetual drag on the nation’s progress. Last week, just as the nation was celebrating the declaration of Ntn profits from operations last year, Nigerians were once again reminded that very little has changed in the management of the affairs of the most important business organization in Nigeria. Until new evidence surfaces indicating a new re-orientation of corporate governance, the NNPCL will find it difficult to shed its negative image. For the most part, nothing seems to work well in the organization.
“Power tends to corrupt; and absolute power corrupts absolutely.”
Lord Acton, 1834-1902.
Late President Yar’Adua and former President Jonathan appointed Ministers who served themselves more than Nigeria, and, although they were not well supervised, the two Presidents were personally above reproach with regard to the operations of the NNPC. Failure to ensure that the mandatory Turn Around Maintenance, TAM, was carried out, as and when due was the only error which can be justifiably charged to their accounts.
Buhari returned Nigeria to the discredited President/Minister approach to governance. It was a monumental disaster. Unlike when he was Petroleum Minister in 1973 and left office in a cloud of financial uncertainty, the sector had become highly technical; and only very few people in any country could successfully manage it. Buhari was not one of them.
He left an unmitigated disaster behind. One of them was the N8tn Crude-for-Loans agreement reached to finance budget deficits incurred by the FG. Under the agreements, 213,000 barrels of crude oil were daily reserved to service the loans.
Given that, at the time, daily output of crude was about 1.4 million barrels a day, daily net production was under 1.2 million barrels each day. Meanwhile, the budgets each year were based on 2 million barrels per day; and later, Alhaji Dangote was promised all the crude required to run his 600,000 barrels refinery. TAMs were not carried out; petrol was imported in large quantities and fuel subsidy payments escalated to untenable proportions. The stage was set for our present predicament.
“828M litres of fuel imported to avert nationwide shortage.” News, December 1, 2025.
Tinubu came into office and applied a shock treatment to the economy which almost killed the patient. Divinely, the nation survived the therapy is now gradually getting out of the intensive care unit. A recovery is now underway – even if tentative. Still, it is undeniable that the economy might be turning the corner. The Organised Private Sector, OPS, has demonstrated resilience, once again, as it did when the Structural Adjustment Programme, SAP, was introduced in the 1980s. There is faint light at the end of the dark tunnel. There is however, an elephant in the room – NNPCL.
Notwithstanding the profits recently declared by the company, the overall performance this year has been underwhelming.
The news report in reference touched on some of the problems. According to the reporter, “Fuel security slowed in October as the Dangote Petroleum Refinery supplied only an average of 17.1 million litres per day of the nation’s petrol needs, forcing the country to rely heavily on imports, despite earlier hopes of self-sufficiency.”
In reality, the hope of self-sufficiency which was based on the assumption that Dangote would be fully supplied with crude was delusory at best. Dangote’s refinery could not attain full capacity in 2025; even if the crude promised was fully delivered. Furthermore, Dangote was not expected to be the sole supplier of petrol to Nigerians. NNPCL, under the former Group Managing Director, Mele Kyari, requested for and was given $2.9 billion to revive the Port Harcourt and Warri refineries; and get them to start supplying fuel. Promises were made to start production by December 2024.
We are now in December 2025. After months of shameless deceit, including reported supply of fuel by the two refineries, Nigerians woke up to the truth. Funds provided for another TAM by NNPCL had vanished with no fuel being produced. That has been the history of the NNPCL since all the four refineries produced petrol during the Babangida administration – a feat which has not been repeated by any other government since 1993.
The NNPC(L) has consistently duped Nigeria because our governments have repeatedly appointed untrustworthy individuals to manage the business. Their crimes have been overlooked by Presidents and the National Assembly for reasons most of us can only guess because nobody has been prosecuted in Nigeria yet.
NNPC(L) ROBIN HOODS
Robin Hood, the famed fairy tale English robber, took from the rich to give to the poor.
Meanwhile, two former Directors of the NNPC(L) have been successfully prosecuted and sentenced in the United States for stealing Nigerian money and laundering the proceeds of crime in the US. The funds stolen in Nigeria were forfeited to American states. The robbers of NNPC(L) rob Nigeria to enrich wealthy nations even more.
CRUDE PRODUCTION PROMISES UNFULFILLED
“Promises like [cookies] are made to be broken.” Jonathan Swift, 1667-1745.
Nothing is more dangerous than a convincing illusion. Nigerian governments have operated on one for over ten years; and NNPC(L) was responsible for it. Nigeria’s budgets in the last twelve years have been based on two million barrels per day crude oil production. NNPC(L) directors invariably accept the budget estimates for crude production. In no single month was the target achieved. That fact has never stopped NNPC(L) from repeating the same promise to Presidents – who were too eager to be deceived. The repercussions have been devastating.
Expected crude oil revenue estimates were never achieved; the increasing negative variances generated were largely responsible for the escalating national debt – of which the N8tn is just a small fraction. Question is: when will NNPC(L) play a positive role?
What is the Dollar to Naira Exchange rate at the black market also known as the parallel market (Aboki fx)?
See the black market Dollar to Naira exchange rate for 9th December, below. You can swap your dollar for Naira at these rates.
How much is a dollar to naira today in the black market?
Dollar to naira exchange rate today black market (Aboki dollar rate):
The exchange rate for a dollar to naira at Lagos Parallel Market (Black Market) players sell a dollar for ₦1495 and buy at ₦1480 on Tuesday 9th December, 2025, according to sources at Bureau De Change (BDC).
Please note that the Central Bank of Nigeria (CBN) does not recognize the parallel market (black market), as it has directed individuals who want to engage in Forex to approach their respective banks.
Dollar to Naira Black Market Rate Today
| Dollar to Naira (USD to NGN) | Black Market Exchange Rate Today |
| Selling Rate | ₦1495 |
| Buying Rate | ₦1480 |
Dollar to Naira CBN Rate Today
| Dollar to Naira (USD to NGN) | CBN Rate Today |
| Highest Rate | ₦1457 |
| Lowest Rate | ₦1450 |
Please note that the rates you buy or sell forex may be different from what is captured in this article because prices vary.
The four-week extended minor inspection, coThe Federal Government, through the Niger Delta Power Holding Company, has restored 450 megawatts of generation capacity to the national grid following the completion of scheduled maintenance works on the Geregu National Integrated Power Project plant in Kogi State.nducted by Siemens Energy, was executed to improve the facility’s reliability and operating efficiency. The intervention also extended the plant’s Equivalent Operating Hours, strengthening one of the country’s most strategic generation assets.
The development was disclosed in a statement on Monday by the Head of Corporate Communications and External Relations at NDPHC, Emmanuel Ojor.
According to the Managing Director/Chief Executive Officer, Jennifer Adighije, the Geregu recovery forms part of a wider effort to revive previously dormant assets across the company’s power fleet.
The statement read, “The Niger Delta Power Holding Company has successfully restored an additional 450MW of generation capacity to the national grid following the completion of scheduled maintenance on the Geregu NIPP plant.
“The four-week extended minor inspection, undertaken by Siemens Energy, was executed to enhance the facility’s operational reliability, performance, and efficiency, thereby extending the plant’s Equivalent Operating Hours and operational life span.”
She revealed that six gas turbines that had been idle for years have been restored within the last 12 months, including GT4 at the Calabar NIPP, GT1 at Omotosho II, GT1 and GT2 at Benin NIPP, GT4 at Sapele NIPP, and GT3 and GT4 at Alaoji NIPP, which are now awaiting pre-commissioning once gas supply constraints are resolved.
Collectively, the restored units will contribute about 875MW to NDPHC’s mechanically available capacity, one of the largest single-year recoveries by a power generation company in recent years.
“The company has also recovered six previously dormant gas turbines across the NDPHC fleet of gas turbines. These include GT4 at the Calabar NIPP, GT1 at Omotosho II, GT1 and GT2 at Benin NIPP, GT4 at Sapele NIPP, and currently GT3 and GT4 at Alaoji NIPP on standby for pre-commissioning after gas supply remedial works,” the statement added.
Adighije also announced the commencement of restoration works on the 225MW Gbarain NIPP plant in Bayelsa State, which has been out of service since 2020.
She described the project as “a major step toward recovering dormant national power assets,” adding that its rehabilitation will support the company’s commercialisation plans aimed at powering key industrial and commercial clusters in the Niger Delta.
Despite persistent challenges relating to gas supply shortages, grid instability, and liquidity pressures across the power sector, NDPHC said it had recorded significant operational and financial breakthroughs.
These include the recovery of 110 containers loaded with critical turbine parts and Heat Recovery Steam Generator components, which were abandoned at Onne Port for more than nine years.
Other milestones include: commencement of the Light Up Nigeria, Agbara industrial cluster project designed to deliver stable electricity to the Agbara Industrial Estate; development of a 10MW embedded solar plant for an industrial zone in Kano; completion of key transmission and distribution projects in Borno and Delta States; and completion of the Afam–Ikot Ekpene 330kV double-circuit line, a long-delayed grid-expansion project.
NDPHC also recovered over $10m from legacy bilateral customers, secured $15m insurance claims for the Alaoji power plant fire incident, and is currently working with the Nigerian Electricity Regulatory Commission on mechanisms for recovering its investments in Transmission Company of Nigeria’s infrastructure.
The company further resolved longstanding commercial disputes with ACCUGAS, leading to an amendment of the gas supply agreement that reduces exposure to the Federal Government.
Beyond infrastructure, Adighije said the company had introduced internal reforms to improve accountability and staff welfare. These include a procurement benchmarking desk to streamline processes, computer-based testing for performance evaluation, and a management support allowance to cushion the impact of fuel subsidy removal.
She explained, “Other success stories include recovery of over $10 million in legacy debts from bilateral customers, securing $15 million in insurance claims for the Alaoji plant fire incident, advanced engagements with NERC on recovering NDPHC’s investments in TCN’s transmission expansion projects, resolution of longstanding commercial issues with ACCUGAS, leading to an amendment of gas supply agreement which reduces government’s exposure.
“To strengthen accountability and staff welfare, the management of NDPHC has introduced a procurement benchmarking desk for streamlining procurement practices, Computer-Based Testing for enhanced staff performance management, and a management support allowance to cushion the impacts of fuel subsidy removal.”
Reaffirming NDPHC’s long-term mandate, Adighije said the company remained committed to “restoring dormant capacity, stabilising operations and supporting Nigeria’s goal of a more reliable and sustainable electricity supply chain.”
She added that the management would continue to prioritise transparency, accountability, and stakeholder engagement as it works to “unlock universal access to electricity that powers businesses and households across the country.”
NDPHC is the special-purpose vehicle managing Nigeria’s National Integrated Power Project, created in 2005 to accelerate power infrastructure development. Many NIPP plants have suffered years of underutilisation due to gas shortages, delayed transmission projects, and liquidity challenges in the electricity market.
The recent restoration efforts mark one of the most aggressive recovery drives undertaken by the company since its inception.
As the 2025 licensing round gets underway, the Federal Government has reduced the signature bonus from $10m to $3m and $7m. The Nigerian Upstream Petroleum Regulatory Commission disclosed this in an update on its website.
According to the commission, this was part of the government’s efforts to reduce entry barriers. “Interested in one of the oil blocks listed for the 2025 Licensing Round? The Nigerian government has graciously reduced the signature bonus to between $3m and $7m.
“All bidders shall be required to submit a bid within a range of $3m and $7m as approved by the minister of petroleum for the reduction of entry barriers,” the commission said.
The PUNCH recalls that in 2024, the government slashed the signature bonus payable by successful bidders from around $200m to $10m. The Chief Executive of the Nigerian Upstream Regulatory Commission, Gbenga Komolafe, stated that the NUPRC surveyed what other countries like Brazil demand as signature bonuses from would-be investors and discovered the need to slash that of Nigeria.
A signature bonus is a non-refundable payment made by a contractor to the government upon the signing of an agreement. Firms who are awarded oil or gas sassets are expected to pay signature bonuses to the government.
The NUPRC disclosed last year that an investment in Deepwater would attract $10m as a signature bonus, while shallow water and onshore attract $7m. It appears the figures have been reduced further to $7m and $3m, respectively.
It was added that the signature bonus cannot be paid in naira. “The designated signature bonus account is United States dollar-denominated,” the NUPRC mentioned.
The regulator stated that the winners of this licensing round will be awarded a Petroleum Prospecting License, which confers to the holder the exclusive right to drill exploration and appraisal wells; the non-exclusive right to carry out petroleum exploration operations within the area provided for in the license; and the right to carry away and dispose of crude oil or natural gas won or extracted during the drilling of exploration or appraisal wells as a result of production tests.
It clarified that the license is for “an initial duration of three years, with a possible extension of another three years for onshore and shallow waters, while it is five years for deep water and frontier.”
The commission disclosed that it has adopted a two-stage bidding process for the award of the blocks, saying the bidding process shall comprise a qualification stage and a bid stage.
“The qualification stage involves the submission and evaluation of applications by interested parties or consortia in accordance with the Regulation and the Guidelines.
“Applicants shall provide all information required for this stage. Only applicants who are adjudged qualified and subsequently shortlisted by the commission shall proceed to the bid stage and will be required to execute a Confidentiality Agreement prior to participation.
“At the bid stage, shortlisted applicants or bidders shall submit their technical and commercial bids in accordance with the regulation, the guidelines, and any other bidding documents issued by the commission.”
The regulator warned that no bidder, whether participating individually or as a member of any consortium, shall submit applications for more than two assets in total across all applications.
“Participation in more than one consortium shall count towards this limit. For the avoidance of doubt, where a company has equity, direct or indirect ownership, or management involvement in multiple consortium vehicles, all such applications shall be aggregated and treated as a single bidder’s application,” it was stated.
NUPRC informed that there are 50 blocks covering the onshore, shallow water, and deep offshore areas.
“The blocks on offer are: PPL 2A29; PPL 2A30; PPL 2A31; PPL 2A32; PPL 2A33; PPL 2A34; PPL 2A35; PPL 2A36; PPL 2A37; PPL 2A38; PPL 2A39; PPL 2A40; PPL 2A41; PPL 2A42; PPL 2A43; PPL 2A44; PPL 2A45; PPL 2A46; PPL 2A47; PPL 2A48; PPL 2A49; PPL 2A50; PPL 2A51; PPL 2A52; PPL 2A53; PPL 2A54; PPL 2A55; PPL 2A56; PPL 2A57; PPL 2A58; PPL 2A59; PPL 2A60; PPL 2A61; PPL 2A62; PPL 2010; and PPL 307.”
Others are “PPL 308; PPL 309; PPL 900; PPL 901; PPL 902; PPL 903; PPL 700; PPL 701; PPL 702; PPL 703; PPL 800; PPL 801; PPL 802; and PPL 803.”
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