Business

FG Clarifies $5bn Aramco Loan Status

Published

1 year ago

June 11, 2025

Amid ongoing conversations around a proposed crude-for-loan arrangement with Saudi oil giant Aramco, the federal government says it remains committed to deploying innovative and fiscally responsible financing strategies to optimise Nigeria’s oil assets, enhance external liquidity, and strengthen macroeconomic stability.

In a statement issued on Wednesday, the Federal Ministry of Finance addressed recent media reports suggesting that discussions over a $5 billion oil-backed loan deal with Aramco may have collapsed. The ministry stated that no final decision has been taken on the matter and urged the public to disregard speculations about the status of the negotiations.

“While market speculation is not uncommon in the context of ongoing economic reforms and transactions, no final decision has been announced by the Government, and commentary suggesting the collapse of any such initiative is unfounded,” the ministry said.

This clarification follows a report earlier in the week by Reuters, which indicated that the proposed oil-for-loan deal between Nigeria and Aramco had stalled. The report, citing four unnamed sources, said the deal was experiencing delays due to a recent downturn in global crude oil prices, which had raised concerns among prospective financiers.

According to the report, the deal, potentially Nigeria’s largest oil-backed loan, would have been the first of its kind involving Aramco at such a scale in the country. However, the sharp drop in global oil prices, along with evolving market indices, reportedly dampened interest among Gulf and African banks expected to co-fund the facility.

The proposed $5 billion loan is part of President Bola Tinubu’s broader external borrowing strategy, which includes a recent request to the National Assembly for approval to borrow $21.5 billion to support the 2024 budget. Sources familiar with the deal said President Tinubu first initiated talks during a bilateral meeting with Saudi Crown Prince Mohammed bin Salman in Riyadh at the Saudi-African Summit in November 2023.

As part of the loan terms, Nigeria would be required to allocate at least 100,000 barrels of crude oil per day to back the facility. However, oil price volatility and output constraints are reportedly complicating the structure of the arrangement.

Bonny Light, Nigeria’s flagship crude blend, is currently trading at around $78 per barrel, slightly above the $75 per barrel benchmark in the 2024 federal budget. Despite this, actual production remains below target. The May report from the Organisation of Petroleum Exporting Countries (OPEC) shows Nigeria produced just under 1.5 million barrels per day (bpd) in April, falling short of the 2 million bpd budgeted output.

Years of underinvestment in the oil sector have hindered Nigeria’s ability to ramp up production. At the same time, the country is using a significant portion of its oil output, estimated at 300,000 bpd, to service existing oil-backed loans, primarily through the Nigerian National Petroleum Company Limited (NNPC Ltd). While one of these facilities is expected to be paid off this month, lower oil prices mean Nigeria may need to allocate more barrels for debt servicing, which in turn affects its capacity to secure new deals.

The slow progress in the Aramco discussions is also attributed to concerns from participating banks over delivery commitments. Some of the lenders involved — said to include Gulf banks and at least one African financial institution — reportedly fear there may not be enough crude available to meet the loan terms due to existing obligations and rising joint-venture costs.

To address production shortfalls and increase oil revenue, the federal government has issued executive orders aimed at lowering production costs and incentivising upstream investments.

These efforts are part of a broader push to stabilise the country’s fiscal outlook amid mounting budgetary needs and global market headwinds.

Despite the current challenges, the federal government maintains that its financing decisions will remain anchored on transparency, accountability, and the effective utilisation of the country’s oil resources.

Thenationonlineng.net

Business

Breaking: CBN Crashes Dollar, Announces New Rates

Published

7 days ago

August 18, 2026

The Daily Voice

The Central Bank of Nigeria (CBN) has announced a new exchange rate for the dollar, with the naira closing at N1,357 per dollar despite high demand for the greenback.

According to data from the CBN, the naira closed flat at N1,357 to a dollar, indicating no change from the previous trading session.

The current rate comes as Nigeria’s external reserves hit $52 billion, a 17-year high. Experts have said the current naira stability has trickled down to other sectors, with imports now getting cheaper.

The CBN sharply ramped up its foreign exchange interventions in March 2026, selling $953.41m to the market in what the data shows is the strongest central bank FX activity since April 2025.

Figures published in the CBN’s latest Quarterly Statistical Bulletin showed that spot market transactions made up the bulk of the March sales, with $950.10m channelled through that route and a further $3.31m directed to Ministries, Departments and Agencies.

The March figure represents a dramatic swing from the opening months of 2026. The CBN sold just $58.93m in January and $244.13m in February, meaning March’s intervention was more than 16 times the January level and roughly 291 per cent above February’s sales.

The last time interventions reached a comparable scale was April 2025, when the CBN supplied $1.65bn to the market. Sales cooled significantly after that peak, falling to $838.93m in May, $676.31m in June, and then sliding further to $399.80m in September and $150.10m in October before picking up again towards the close of 2025.

Business

No More N14,000/Bag: Dangote Cement Breaks Silence on New Prices Nationwide

Published

7 days ago

August 18, 2026

The Daily Voice

The chairman of Dangote Cement Plc, Emmanuel Ikazoboh, has explained why cement prices remain high across Nigeria, attributing the persistent increases to rising energy costs and the impact of foreign exchange on production expenses.

His comments come amid growing concerns from Nigerians over the soaring cost of building materials, with many calling on the government to intervene as cement prices continue to put pressure on construction projects and housing development.

Speaking during the 17th Annual General Meeting (AGM) of Dangote Cement Plc in Lagos, Ikazoboh said energy remains the biggest cost component in cement manufacturing, accounting for about 60 per cent of total production expenses.

Energy, dollar exchange rate driving costs According to Ikazoboh, cement manufacturers rely heavily on gas, coal, and diesel to power their operations. He noted that gas, one of the key energy sources, is sold in United States dollars, exposing manufacturers to exchange rate fluctuations. He explained that the continued depreciation of the naira against the US dollar has significantly increased production costs, making it difficult for manufacturers to maintain lower prices.

According to Ikazoboh, cement manufacturers rely heavily on gas, coal, and diesel to power their operations. He noted that gas, one of the key energy sources, is sold in United States dollars, exposing manufacturers to exchange rate fluctuations.

He explained that the continued depreciation of the naira against the US dollar has significantly increased production costs, making it difficult for manufacturers to maintain lower prices. “To produce a bag of cement, we need energy, which constitutes about 60 per cent of the production cost. To generate that energy, we use gas, coal or diesel,” he said.

“Gas is sold to us in US dollars, and its price continues to increase. We all know the impact of the exchange rate between the dollar and the naira. As a result, the cost of generating energy keeps rising.”

His remarks offer one of the clearest explanations yet from the country’s largest cement producer on the factors behind recent price increases.

Business

Dr. Deji Adeleke: How Davido’s Billionaire Father Built His Business Empire; Major Companies Linked to Him

Published

1 week ago

August 17, 2026

The Daily Voice

Dr. Deji Adeleke, the father of the globally recognized musician Davido, is not just known for his familial ties to the entertainment industry but also his immense wealth and substantial impact on Nigeria’s economic landscape. Born on March 6, 1957, in Enugu, Nigeria, Adedeji Adeleke has built a formidable empire through his business acumen and educational investments.

Adeleke’s Business Ventures
Dr. Adeleke founded Pacific Holdings Limited in 1983, which has grown into a major conglomerate in Nigeria, encompassing various sectors such as agriculture, energy, and real estate.

This company is a cornerstone of his financial success, with divisions like Pacific Farm Limited, Pacific Freightliners Limited, and Pacific Gas Company Limited contributing significantly to his wealth.

Adeleke’s Real Estate Investments
Adeleke’s real estate portfolio is vast and diversified. He owns properties across Nigeria, including high-value areas like Ikoyi, Lekki, Banana Island, and Victoria Island in Lagos. Additionally, he has invested in international properties, including a mansion in Atlanta, USA, which he acquired to celebrate his 60th birthday.

Adeleke’s University and Philanthropy
In line with his passion for education, Adeleke founded Adeleke University in Ede, Osun State, under the auspices of the Springtime Development Foundation, which he established in 1996. The university operates on the Seventh-day Adventist philosophy of education and offers various undergraduate and postgraduate programs.

His philanthropic efforts extend beyond education, impacting healthcare and community development. These initiatives not only enhance his public image but also contribute to long-term societal benefits, reinforcing his legacy as a socially responsible entrepreneur.

Adeleke’s Luxurious Lifestyle
Dr. Adeleke’s lifestyle reflects his financial success. He owns luxury cars such as a Rolls Royce Phantom and a 2017 Bentley Mulsanne, and he flies in style with his Bombardier Global Express 6000 private jet, valued at $62 million.

Adeleke’s Net Worth
Estimations of Adeleke’s net worth vary, with some sources placing it around $700 million, while others suggest it could be as high as $2 billion. His wealth is attributed to his diversified investments in real estate, stocks, and bonds, alongside the thriving operations of Pacific Holdings Limited.

Adeleke’s Family and Personal Life
Adeleke is a father to four children: Adewale, David (Davido), Sharon, and Coco Adeleke. Despite initial resistance to Davido’s music career, he eventually supported his son’s passion, even funding the establishment of a music department at Babcock University for him. Today, Davido is not only a successful musician but also a director in the family business.

Conclusion
Dr. Deji Adeleke’s story is one of remarkable success through strategic education, entrepreneurship, and philanthropy. His wealth and business acumen have positioned him as one of Nigeria’s most influential figures, contributing significantly to the nation’s economic and social development. As he continues to invest and expand his empire, his legacy is set to influence future generations both within and outside Nigeria.

Adeleke’s Early Life and Education
Adeleke’s journey began in an affluent family in Lagos. He attended Ansar-ud-Deen Primary School and Seventh-Day Adventist Grammar School before moving to the United States, where he earned a degree in Finance from Western Kentucky University in 1979, followed by an MBA. Furthering his education, he obtained a Ph.D. in International Business from Pacific Columbia University, and another Ph.D. in Business Administration from the University of Phoenix in 2010.

– kashgain