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In Nigeria: FEC directs sale of Nigeria’s crude oil to Dangote, other local refineries in naira

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reported the dispute between Dangote refinery and regulators in the oil sector over crude supply to the refinery and importation of refined petroleum products.

 

The Federal Executive Council (FEC) has directed Nigerian National Petroleum Company Limited (NNPC Ltd) to engage Dangote refinery and other local refineries with a view to resolving the dispute over the sale of crude oil to them.

The FEC, presided over by President Bola Tinubu, also directed that such crude oil sales to the refineries be made in naira and that the refineries, located in Nigeria, should also sell their refined products to the Nigerian market in naira.

 

 

The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, who disclosed this on Monday in Abuja while speaking to State House correspondents at the end of the council meeting said the refinery is now approaching steady-state operations noting that it requires approximately 15 crude cargoes per month, translating to an annual supply cost of $ 13.5 billion.

 

He explained that the NNPC Ltd has committed to supplying four (4) crude oil cargoes monthly, leaving the remainder to be sourced from international traders.

Currently, he said, these transactions are conducted in dollars, significantly straining Nigeria’s foreign currency liquidity. He added that strategic intervention is required to leverage the Dangote Refinery to stabilise Naira exchange rates and restore price stability.

To manage the significant foreign exchange (FX) needs for local refineries and petroleum marketers, Mr Adedeji said it is proposed that “local refineries’ crude oil purchases from NNPC Ltd be denominated” in Naira at a fixed exchange rate for a minimum period of six months.

“Refined product sales to approved local petroleum marketing companies be conducted in Naira at the same fixed exchange rate,” he said.

“A settlement bank (e.g., Afreximbank) facilitates both trades by providing guarantees to NNPC Ltd to cover the payment risk of local refineries and to Nigerian commercial banks for the payment risk of petroleum marketing companies. This approach will eliminate the need for international letters of credit, saving Nigeria substantial amounts of USD,” he said.

The proposed scenario, according to him, offers reduction in foreign exchange pressure, as the previous scenario utilized $660 million per month, totaling $7.92 billion annually.

With the proposed scenario, he said expenditures are projected to decrease to $50 million per month, equating to $600 million annually.

“This reduction will significantly alleviate the pressure on foreign exchange reserves, leading to an annual savings of $7.32 billion representing 94 per cent, reduced trade finance costs with annual savings of $79 million in local currency costs through Afreximbank’s payment undertakings for bilateral trades and stabilised petroleum product prices as the forward-selling of crude oil and refined products at a fixed exchange rate unaffected by exchange rate fluctuations will stabilise pump prices,” he noted.

He added that stabilising petroleum prices will likely drive the appreciation of the Naira, as petroleum imports account for 30 per cent of Nigeria’s FX demand.

Mr Adedeji said stable petroleum prices will lower transportation costs, reduce food price inflation and positively impact interest rates and dollar/Naira exchange rates.

“This strategy will eliminate government control and drive independence of the market as it aims to eliminate government intervention in the management of domestic petroleum prices, further facilitating competitiveness and allowing for greater market predictability and stability.

“This model, subject to the settlement bank’s (e.g., Afreximbank) credit approvals, can be replicated for other refineries, facilitating the trade of 445,000 barrels reserved for domestic consumption and achieving energy security. This further ensures that strategic reserves are pegged at tolerable prices driving improved economic stability.”

Background

In recent months, the Dangote Group and the petroleum regulators in Nigeria have been at loggerheads over the control of the petroleum downstream market.

Last month, the Dangote Group accused some international oil companies of sabotaging the plant’s operations by either refusing to supply crude or offering oil at higher premiums compared to market prices.

It also clashed with the regulators of the Nigerian energy industry, including the Nigerian Midstream and Downstream Regulatory Authority, which claimed diesel from the refiner has sulphur content levels above the allowed threshold. The regulators also accused Dangote of seeking to be a monopoly.

READ ALSO: EDITORIAL: Resolving the feud between Dangote and oil sector regulators

In refuting the allegation, Mr Dangote took lawmakers visiting the refinery to a laboratory within the plant, where diesel from the refinery was tested alongside two different samples from imports.

The results showed the sample from the refinery’s diesel had much lower sulphur than the imported ones.

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Soludo takes over Onitsha main market as IPOB declares compulsory sit-at-home

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The Governor of Anambra State, Prof Chukwuma Soludo has announced that his government will take over the running of Onitsha Main Market.

The governor had last Monday visited the market and also announced a one week closure over the continued adherence to sit at home protest by traders in the market.

The closure had generated a lot of tension, leading to protests by the traders, while the governor stuck to his gone, insisting that the market will remain closed for one week. He also held a meeting with the leaders of the market yesterday, where he presented them with two options.

Though it was a closed door meeting, which held at the Light House, Awka, a source in the meeting told THISDAY that the traders chose to open their shops on Monday, against an earlier option of demolishing and remodelling the market.

The source said: “The governor gave them two options. The first included; they will resume full trading activities on Mondays, mark attendance as required, while he regenerate and reorganise the market, demolish all illegal structures and plazas and create proper spaces and car parks. The second includes; To continue with Sit-at-Home on Mondays and risk the demolition of the market and use two-years for its reconstruction to restore it to its original master plan.

“The governor told them that restoring parking facilities in Main Market is an emergency, and any illegal structure erected at the park would be demolished soonest.”

It was gathered that the traders choose the first option, which will involve them opening on Monday, and giving the governor the go ahead to remove illegal structures to make way for wider roads in the market and restoring its packing space.

During the meeting, the governor told the traders that a committee will be set up to rectify all occupants of shops in the market, and that this will commence work soon, insisting that the government needs to know those who are trading in its market.

The governor was also said to have rejected a plea for the market to be opened on Saturday, insisting it can only be opened on Monday, when their compliance will again be re-accessed.

“The traders agreed to the terms, and will on Monday reopen the market to recommence business,” the source said.

Meanwhile, secessionist group, Indigenous People of Biafra (IPOB) has declared what it called Biafra-wide solidarity lockdown which is to hold on Monday in solidarity with Onitsha traders and to demand for Mazi Nnamdi Kanu’s immediate release.

A press release by the group’s publicity secretary, Mr Emma Powerful said the total shutdown across Biafraland is a direct, peaceful, and unified response to the shutting down of Onitsha Main Market for one week by Soludo.

The release said: “We remind Governor Soludo and his Abuja sponsors that the Monday sit-at-home originated as a peaceful protest demanding the unconditional release of Mazi Nnamdi Kanu, the very cause that has galvanized global attention to Biafra’s quest for self-determination.

“Attempts to twist this into “economic sabotage” or “criminality” will fail. The markets thrived during Christmas Mondays without incident, proving that voluntary compliance stems from genuine solidarity, not fear. Soludo’s escalation only exposes his desperation to provoke confrontation at a time when Biafra’s international profile is rising and diplomatic efforts are gaining traction.

“On Monday, February 2, 2026, we call on all Biafrans traders, transporters, banks, schools, civil servants, and every sector across Anambra, Abia, Imo, Enugu, Ebonyi, and beyond to observe this solidarity strike peacefully.

“Remain indoors, refrain from all commercial and public activities, and demonstrate to the world our disciplined resolve. This is not about disruption for its own sake; it is about standing with Onitsha traders who are being punished for demanding justice, and reaffirming that no governor can coerce free citizens into abandoning their rights or their solidarity.”

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BUA Chairman Is My Ex-Husband – Tinubu’s Minister Opens Up On Past Secret With Abdul Samad Rabiu

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Nigeria’s Minister of Art, Culture and the Creative Economy, Hannatu Musawa has opened up about her former marriage to BUA Group chairman Abdul Samad Rabiu, describing it as a meaningful and life-shaping experience.

In a conversation on the MIC On Podcast with Channels Television journalist Seun Okinbaloye, Musawa reflected on her bond with Rabiu, saying their connection has remained strong despite their separation.

She explained that their relationship has evolved into one grounded in family ties, mutual respect, and continued support.

Musawa shared that although they are no longer married, they remain close and involved in each other’s lives.

She also pointed out the lasting connection between their families, noting that her daughter, Khadija, was named after Rabiu’s grandmother, showing the enduring link between them.

The minister described her time with Rabiu as one of the most memorable periods of her life.

She stated that there is no bitterness between them and that she will continue to support him in his endeavors, maintaining respect and care for their shared history.

She said: “We love each other because you love your family, obviously. But Samad is my brother. He’s my family. That’s what he is. And I’m his sister and his family, too. The marriage of the greatest experiences I’ve ever had.

“He is my ex-husband, but we are still family. We juggle coming from a background where, once you’re joined together, you continue to participate in each other’s lives. And so, we were married, and now we are just family.

“My daughter Khadija was named after Samad’s grandmother.

“We continue to share a deep respect and a love, and more than anything, support for each other. I’ll continue to be his greatest cheerleader.”

Abdul Samad Rabiu leads BUA Group, a Nigerian conglomerate with investments in cement, sugar, and other industries, and is regarded as one of the country’s leading business figures.

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LIRS reiterates January 31st deadline for employers’ Annual Tax returns filing

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The Lagos State Internal Revenue Service (LIRS) has reiterated the statutory deadline of 31st January 2026 for all employers of labour in Lagos State to fulfil their statutory obligation to file their annual tax returns for the 2025 financial year.

In a statement issued on Thursday, January 19, the Executive Chairman of LIRS, Dr Ayodele Subair, reminded employers that the obligation to file annual returns is in accordance with the provisions of the Nigeria Tax Administration Act 2025 (NTAA).

Dr Subair explained that employers are required to file detailed returns on emoluments and compensation paid to their employees, as well as payments made to their service providers, vendors and consultants, and to ensure that all applicable taxes due for the year 2025 are fully remitted. He emphasised that filing of annual returns is a mandatory legal obligation, and warned that failure to comply will result in statutory sanctions, including administrative penalties, as prescribed under the new tax law.

According to Section 14 of the Nigeria Tax Administration Act 2025 (NTAA), employers are required to file detailed annual returns of all emoluments paid to employees, including taxes deducted and remitted to relevant tax authorities. Such returns must be filed and submitted not later than January 31 each year.

Dr Subair stated

“Employers must prioritise the timely filing of their annual income tax returns. Compliance should be part of our everyday business practice. Early and accurate filing not only ensures adherence to the law as required by the Nigerian Constitution, but also supports effective revenue tracking, which is important to Lagos State’s fiscal planning and sustainability.”

He further noted that in Lagos State, electronic filing via the LIRS eTax platform remains the only approved and acceptable mode of filing, as manual submissions have been completely phased out. This measure, he said, is aimed at simplifying and standardising tax administration processes in the State.

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