Business

States Demand Forensic Audit Of $8.8bn Crude-For-Loan Deals

Published

6 months ago

March 13, 2026

State governments have called for a forensic audit of Nigeria’s crude oil-backed borrowing arrangements, warning that opaque crude-for-loan and swap deals may be undermining inflows into the Federation Account.

The PUNCH earlier reported that the Nigerian National Petroleum Company Limited pledged 272,500 barrels per day of crude oil through a series of crude-for-loan deals totalling $8.86bn, according to an analysis of a report by the Nigeria Extractive Industries Transparency Initiative and the NNPC’s financial statements.

According to The PUNCH’s findings, NNPC has already fully repaid $2.61bn in loans, representing 29.4 per cent of the total credit facility, while $6.25bn or 70.6 per cent, remains outstanding. Also, out of the $8.86bn credit facility, only about $6.97bn has been received from seven crude-for-loan deals, as of December 2023.

However, state governments, through their commissioners of finance, are demanding an audit of these deals.

The demand was contained in a communiqué issued at the end of the 2026 retreat of the Federation Account Allocation Committee Post-Mortem Sub-Committee, obtained by The PUNCH on Thursday, which stated that, “All crude oil-backed borrowing arrangements should be subjected to legislative approval, full disclosure, and independent audit. Existing arrangements should be reviewed, with forensic audits conducted to restore confidence and protect future Federation revenues.”

The communiqué followed a three-day retreat held in Enugu between February 9 and February 11, where fiscal authorities, state representatives, revenue agencies, and policy experts met to examine persistent revenue leakages affecting the Federation Account.

The retreat, which focused on “Assessing Fiscal and Sectoral Policies for Closing Revenue Leakage in the Federation Account,” was organised to critically assess fiscal frameworks and administrative practices affecting federal revenue collections and distribution to the three tiers of government.

According to the communiqué, the meeting was convened by the FAAC Post-Mortem Sub-Committee to “critically assess fiscal and sectoral policies contributing to revenue leakage in the Federation Account and to reposition the Sub-Committee for a more proactive revenue assurance role.”

The retreat was formally opened by the Governor of Enugu State, Dr Peter Mbah, who was represented by the Secretary to the State Government, Prof Chidiebere Onyia. In his goodwill message, Onyia welcomed participants and reaffirmed the importance of fiscal coordination and transparency in managing public finances.

He also emphasised the need for stronger accountability mechanisms in the management of Federation revenues, while commending the FAAC Post-Mortem Sub-Committee and the Revenue Mobilisation Allocation and Fiscal Commission for their efforts to strengthen public finance governance in the country.

The communiqué indicated that the welcome address was delivered by the Chairman of the FAAC Post-Mortem Sub-Committee, Abdulazeez King.

Goodwill messages were also delivered by the Chairman of the Revenue Mobilisation Allocation and Fiscal Commission, Dr Mohammed Shehu, who was represented by Federal Commissioner, Ntufam Whiley.

The former Minister of State for Finance, who is now the Minister of State for Budget, Dr Doris Uzoka-Anite, and the Permanent Secretary of the Federal Ministry of Finance, Mr Raymond Omachi, were represented at the event by Dr Ali Mohammed, Director of Home Finance.

A keynote address on the theme of the retreat was delivered by the Accountant-General of the Federation, Mr Shamseldeen Ogunjimi, who was represented by Mrs Rita Okolie, Director of the Federation Account at the Office of the Accountant-General of the Federation.

Participants at the retreat included representatives of the Federal and State Governments, revenue-generating agencies, oversight institutions, and technical experts.

According to the communiqué, deliberations during the sessions were enriched by presentations covering a broad range of fiscal governance issues, including the Federation Account framework, reforms in the petroleum sector, tax policy changes, audit oversight, crude oil-backed borrowing, and administrative practices affecting government revenue inflows.

Participants at the retreat reaffirmed the constitutional importance of the Federation Account as the central pool through which revenue is shared among the three tiers of government.

The communiqué noted that the account, established under Section 162 of the 1999 Constitution, “remains the backbone of fiscal sustainability for the three tiers of government.”

However, it warned that several structural challenges continue to erode the volume of distributable revenues available to the Federal Government, states, and local governments.

The communiqué stated that participants unanimously observed that “persistent revenue leakages, opaque deductions, institutional inefficiencies, and weak oversight continue to erode distributable revenues.”

The retreat also expressed concern over the increasing scale of quasi-fiscal deductions from Federation revenues. These deductions, according to participants, include power sector subsidy obligations, debt write-offs, and operational expenses deducted at source before revenue is remitted into the Federation Account.

The communiqué stated that these practices were widely viewed as inconsistent with the principles of transparency and fiscal discipline.

It said, “The retreat noted with concern the growing scale of quasi-fiscal deductions from Federation revenues, including power-related subsidy obligations, debt write-offs, and operational costs deducted at source. These practices were considered inconsistent with transparency, budgetary discipline, and constitutional intent.”

Participants also examined the implications of the Petroleum Industry Act and its impact on the management of oil and gas revenues. While acknowledging that the legislation has created opportunities for improved governance in the petroleum sector, the retreat raised concerns about certain operational practices under the new framework.

According to the communiqué, participants noted that issues surrounding the transfer of joint venture assets to NNPC Limited, management fees, production sharing contract profit oil administration, and the Frontier Exploration Fund had raised serious concerns among stakeholders.

“These developments were observed to have materially reduced inflows into the Federation Account and weakened oversight,” the communiqué stated.

The retreat further stressed the importance of transparency, accountability, and stronger oversight mechanisms in the management of public finances. Participants agreed that unrestricted access to Federation Account data by oversight institutions was essential for effective monitoring and recovery of government revenues.

The communiqué stated, “Transparency, accountability, and oversight are indispensable to closing revenue leakages. It was resolved that unrestricted access to Federation Account data by oversight institutions, particularly the Office of the Auditor-General for the Federation, is critical for effective monitoring, audit, and recovery of revenues.”

Participants also highlighted the role of the Supreme Audit Institution in preventing and detecting revenue leakages. The retreat emphasised the need to strengthen audit capacity and improve the timeliness of audit reporting to ensure that audit findings lead to concrete revenue recovery and deterrence against financial misconduct.

According to the communiqué, “Participants underscored the constitutional role of the Supreme Audit Institution in preventing and detecting revenue leakages. The retreat called for strengthened audit capacity, timely audit reporting, and enforceable follow-up mechanisms to ensure that audit findings translate into actual revenue recovery and deterrence.”

The meeting also raised concerns about the high cost of revenue collection by some government agencies. Participants described these costs as a major drain on the Federation Account and called for reforms to align collection charges with global best practices.

“The high cost of revenue collection by certain agencies was identified as a major drain on the Federation Account,” the communiqué said.

It added that participants resolved that cost-of-collection arrangements should be periodically reviewed and benchmarked against international standards. The retreat also welcomed ongoing tax reforms aimed at expanding the tax base and improving compliance across the country.

Participants noted that the reforms could significantly boost government revenue if implemented effectively. The communiqué stated that tax reforms should focus on strengthening compliance mechanisms and reducing fragmentation within the tax system.

Another major area of concern discussed at the retreat was the growing reliance on crude oil-backed borrowing and crude-for-product swap arrangements. The communiqué specifically mentioned arrangements such as Project Gazelle and the Direct Sale Direct Purchase scheme.

It stated that participants expressed “grave concern over crude oil-backed borrowing arrangements and opaque crude-for-product swaps, including Project Gazelle and the Direct Sale Direct Purchase scheme.”

The retreat noted that such arrangements could reduce transparency in revenue flows and weaken accountability in the management of oil revenues. It was, therefore, recommended that any future crude-backed financing arrangements must receive legislative approval and be subject to full disclosure and independent audits.

Participants also called for stronger collaboration between RMAFC and NNPC Limited to ensure proper accounting for oil revenues. The communiqué recommended that RMAFC should intensify engagement with the national oil company to obtain complete documentation relating to joint venture asset transfers and to compute net revenues due to the Federation.

It said the commission should also pursue appropriate recovery actions where discrepancies are identified.

The PUNCH earlier reported that about 14.66 per cent of Nigeria’s crude oil production in 2025 was likely committed to servicing crude-backed loan facilities, based on estimates derived from disclosures in the Nigerian National Petroleum Company Limited’s 2024 financial statements and official production data.

An analysis by The PUNCH shows that four major crude-secured arrangements — Project Gazelle, Project Yield, Project Leopard, and Eagle Export Funding — are backed by a combined 213,000 barrels of crude oil per day.

If this allocation remained unchanged throughout 2025, the total volume committed to debt servicing would amount to 77.75 million barrels for the year, calculated by multiplying 213,000 barrels per day by 365 days.

Data from the Nigerian Upstream Petroleum Regulatory Commission indicate that Nigeria produced 530.41 million barrels of crude oil between January and December 2025.

The 77.75 million barrels tied to crude-for-loan arrangements therefore represent 14.66 per cent of total annual production. Using the 2025 average Bonny Light price of $72.08 per barrel, the 77.75 million barrels translate to about $5.60bn.

Converted at the official exchange rate of N1,492 to the dollar, the crude potentially deployed to service the loans is valued at approximately N8.36tn. This implies that out of the estimated gross crude oil earnings for 2025, a sizeable portion of output by volume was effectively earmarked for debt servicing before revenues could fully accrue to government coffers.

The obligations span multiple forward-sale and project-financing arrangements expected to be serviced through substantial crude oil and gas deliveries. These commitments have become a central pillar of NNPC’s funding framework following years of fiscal strain, volatile production, and declining upstream investment.

Several of the facilities were used to refinance legacy debts, fund refinery rehabilitation, support cash flow, and meet government revenue obligations.

The Chief Executive Officer of AHA Strategies, Mr Ademola Adigun, earlier linked declining oil earnings to opaque crude-for-cash arrangements and undisclosed loan repayments that have tied up part of the country’s output.

“Some of our crude is already tied up in loan agreements. The problem is that Nigeria doesn’t know the full details of these transactions because there’s little transparency around them,” Adigun said.

Business

Emir Sanusi Sends Strong Warning to Nigerians Buying Dangote Shares

Published

6 days ago

September 18, 2026

The Daily Voice

The Emir of Kano, Muhammadu Sanusi II, has warned prospective investors against using their children’s school fees or selling their homes to invest in shares.

Sanusi gave the warning on Thursday while speaking at the Dangote Refinery Initial Public Offering investor roadshow in Kano.

He urged Kano residents and other prospective investors to invest only money they could afford to set aside for some time, saying they could consider amounts such as N10,000, N20,000 or N30,000.

He said, “Do not take your children’s school fees and put in shares, Do not sell the house that you live in and put in shares.

“But what you can afford,10,000, 20,000, 30,000, what you can afford to set aside for some time, set it aside. And if you look at the fundamentals of the economy, over time you can be assured that this investment will grow, and you will not regret it.”

The Emir was speaking as part of the ongoing investor outreach for the Dangote Refinery IPO, which opened on September 14.

Sanusi urged Kano residents to participate in the capital market, saying they should seek to become shareholders in the refinery founded by Kano-born businessman, Aliko Dangote.

“I speak as the Emir of Kano, I would like my people to be owners of this company.

“I do not want us to be left behind in the capital markets. I do not want us to be left behind in financial inclusion. So this is the time and this is the opportunity,” he said.

The Emir also urged representatives of unions and other groups to educate their members about the opportunity to invest.

He advised prospective investors to adopt a long-term approach rather than buying shares in anticipation of quick profits.

“And I’m not talking about someone who will buy 5,000 shares and want to sell tomorrow and believe he will get 10,000. No, I’m talking about you have some money, put it in, leave it there for some time, and just watch your money grow.

“Forget about it for some time. You’ll be surprised in five years the 10,000 Naira you invest today, what it will be. The 100,000 Naira you invest, what it will be,” Sanusi said.

Sanusi also said the location of the refinery should not discourage Kano residents from investing, stressing that shareholders, rather than the location of the facility, determine ownership of the company.

“It doesn’t matter where the refinery is located. It could be located in Lagos, or Ibadan, or on the moon. It is the shareholders who own it.

“It is the shareholders who own it. It’s the shareholders who take the return. It is the shareholders who own the profit,” he said.

The Emir described Dangote as a son of Kano and urged residents to take advantage of the IPO to have a stake in the company.

“We have heard Lagos claim Aliko. I know very soon even Egypt will claim him, America will claim him. But we all know where he comes from,” Sanusi said.

He added, “I would like to say that this is his grand homecoming. We are happy to donate him.

“We are happy to share him, but please do not take him away from us.”

Sanusi also highlighted the refinery’s operations, saying prospective shareholders could see the assets and activities of the company, including its production of refined petroleum products and fertiliser.

He said the refinery was also creating direct and indirect jobs and had secured its gas supply, port access and markets.

-Punch

Business

Refinery: Our N2.2trn IPO’ll Democratise Wealth Creation —Dangote

Published

1 week ago

September 15, 2026

Uthman Abdulganiyu

Alhaji Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, has said the Initial Public Offering, IPO, of Dangote Petroleum Refinery and Petrochemicals, FZE, would democratise wealth creation by giving Nigerians and investors globally an opportunity to own shares in one of Africa’s major industrial projects.

Dangote stated this yesterday at the “Facts Behind the Offer” presentation and opening gong ceremony for the refinery’s IPO in Lagos, where the Nigerian Exchange Limited, NGX, formally opened the N2.2 trillion offer.

The IPO comprises 4.1 billion new ordinary shares offered at N525 per share, with a minimum subscription of 10 shares valued at N5,250. The offer is scheduled to close on October 13, subject to the terms contained in the prospectus.

Describing the offer as a historic moment for Nigeria’s capital market, the Dangote Group and Africa, Dangote said: “It would enable ordinary Nigerians and investors globally to own shares in one of Africa’s major industrial projects.

“What initially belongs to a country, begins in a deeper sense, now belongs to the people. Today is such a moment; today is a historic day

“The IPO is not simply about listing a company but creating a new possibility for Nigeria and Africa by broadening ownership of a major industrial asset.

“The decision to offer shares to the public was driven by the desire to allow more people participate in and benefit from the prosperity created by the refinery.

“An asset of this magnitude should not create value for only a very few people. It should create value for millions of people, not only Nigerians, but all over the world.”

Dangote noted that the IPO was not primarily about raising funds, as the group already had sufficient resources for its expansion.

He said the group had planned to raise $2.5 billion through private placement and the IPO, comprising $1.5 billion from the IPO and $1 billion from private placement.

According to him, the private placement attracted significant demand, with applications of about $2.5 billion for the $1 billion offer.

He said the strong demand made it necessary to return about $1.2 billion to investors after allocations were made.

“We already met all our demands with the private placement. Coming back now to the IPO is actually about making sure that the public can get part of these benefits,” he said.

Dangote said the broad-based ownership would provide investors with an opportunity to preserve and grow their wealth through exposure to a business whose revenues were largely dollar-linked.

He said this could particularly benefit Nigerians with financial obligations abroad, including payment of school fees, as investors would receive dividends in dollars.

He urged Nigerians and Africans to seize the opportunity, saying the refinery could become Africa’s largest company by the end of the year.

“You are buying a future. It is a company that is not only about revenue, but profitability,” he said

Dangote described the refinery as a world-class industrial asset and the largest refinery in Africa, built to international standards and equipped with modern technology.

He said the facility was supplying Nigeria’s domestic market while also serving other African and international markets.

According to him, the refinery has become a major supplier of aviation fuel to Europe, and that its jet fuel production had been sold out for August and September.

Dangote said the group was also expanding its petrochemical operations, including plans to produce polypropylene, polyethylene and polystyrene.

He said the expansion would create additional opportunities for investors and contribute to the development of industries that depended on petrochemical products.

The business mogul also disclosed that the group was exploring opportunities outside Nigeria, including plans to establish a refinery in Lamu, Kenya.

He said the group’s expansion was part of efforts to position African businesses to attract large-scale global investment.

“Africa is like a scratch card. Unless you scratch it, you don’t see the use of it. The opportunities are immense,” Dangote said.

He called on Nigerians and Africans to seize the opportunity, saying the refinery could become Africa’s largest company by the end of 2026.

“What we are trying to do is to open up the market and make sure that when we open up the market, Africans and non-Africans will join us to have what you call the new Africa rising,” he said.

Dangote added that crude oil could yield thousands of products, emphasising the importance of building refining and petrochemical capacity in Africa.

He said the growing number of aircraft being ordered by airlines globally would continue to create demand for aviation fuel, particularly as new refineries were not being developed at the same pace.

‘It’s a historic offer’ — Aig-Imoukhuede

Commenting on the offer, Aigboje Aig-Imoukhuede, Chairman, Access Holdings, described it as historic.

He said: “The Dangote Refinery has a nameplate capacity of 650,000 barrels per day and is one of the largest single-train refineries in the world.

“With this particular, sterling, historic offer and what I have seen in the data room, where already billions of Naira have been subscribed by thousands of investors within minutes or under an hour, you are a blessing to humanity.”

IPO demonstrates capacity of capital market — NGX Chairman

Also speaking, Dr Umar Kwairanga, Chairman, NGX Group, said the IPO demonstrated the capacity of Nigeria’s capital market to support businesses at a global scale.

Kwairanga said the offer of 4.1 billion ordinary shares at N525 per share, to raise about N2.15 trillion, was significant in scale and importance.

According to him, the transaction is an opportunity to demonstrate the capacity of the capital market to support enterprise and provide investors with confidence in the integrity, transparency and efficiency of the market.

He described Dangote Petroleum Refinery as one of the most significant industrial investment projects on the continent and a demonstration of what Nigerian enterprise could conceive, finance and execute.

He said deeper and more effective capital markets were required to connect African savings with African enterprises and finance businesses capable of competing globally.

“Transactions of this scale strengthen our proposition and demonstrate what our markets can achieve when capital, enterprise and ambition come together,” he said.

The NGX chairman said the development of Africa required Africans to actively participate in businesses and investments on the continent.

“Dangote has built Africa. Now, we are going to exercise our rights and be part and parcel of this huge investment as part owners of Dangote Refinery after this offer,” he said.

Kwairanga commended Dangote and the board and management of Dangote Petroleum Refinery for taking the company to the capital market.

He said the NGX had the capacity and resources to support more large-scale transactions and attract significant businesses to the capital market.

Meanwhile, Mr David Bird, Chief Executive Officer of Dangote Refinery, said the IPO was designed to encourage broad participation.

He said: “The intent is very much the people’s IPO, drive wide participation, enable Nigerians and the Nigerian diaspora, and Africans more broadly, the opportunity to participate in this wealth creation that comes from such an iconic industrial asset, like the Dangote refinery.”

Over 100 approved channels for Dangote IPO

— NGX boss

Investors looking to buy shares in Dangote Petroleum Refinery can access the N2.2 trillion IPO through more than 100 approved channels, Temi Popoola, Group Chief Executive Officer, Nigerian Exchange Group, NGX, said yesterday.

He said: “NGX, other regulators, market operators have made it possible for banks, stockbrokers, fintech companies, mobile operators, and POS operators to give investors multiple channels to participate in the landmark offering.”

Business

Dollar To Naira Exchange Rate Today, September 7th, 2026

Published

2 weeks ago

September 7, 2026

Uthman Abdulganiyu

The Nigerian currency, Naira (₦), continued its battle against the United States dollar at the official foreign exchange market on Saturday.

Daily Voice reports that data from the Central Bank of Nigeria (CBN) showed that the local currency sold at ₦1,321.2160/1$ on Sunday.

The latest rate is the same as Saturday’s rate of ₦1,321.2160/1$.

At the parallel market (black market), however, the naira closed on Sunday at ₦1,400 to the dollar.

The offers by commercial banks, Bureau de Change (BDC) operators, and other foreign exchange dealers may, however, differ from the reference rates due to transaction margins and prevailing demand and supply conditions.

Market participants will continue to monitor foreign exchange inflows, demand for dollars, and CBN policies for indications of whether the naira can sustain its gains through the month.