Economy
Delay in Crude Supply to Dangote Refinery Threatens Nigeria’s Economic Stability – EIU Report
The Economist Intelligence Unit (EIU) has raised concerns that delays in supplying crude oil feedstock to the Dangote Petroleum Refinery and Petrochemicals could jeopardize Nigeria’s economic recovery and further strain the naira. The $20 billion refinery, which commenced production in January, has faced setbacks in petrol production due to insufficient crude oil.
Despite successfully exporting a range of products, including fuel oil, naphtha, nitrogen fertilizers, gasoil, jet fuel, and diesel, the refinery has struggled to scale up petrol production because of difficulties in sourcing adequate crude oil. This issue is expected to exacerbate economic challenges for Nigeria, potentially intensifying the existing pressure on public finances and the naira.
The report notes that while the official petrol subsidy was abolished in June 2023, unofficial subsidies persist, significantly impacting the national budget. This has led to increased currency losses and a widening budget deficit, which might compel the Central Bank of Nigeria (CBN) to adopt stricter currency management measures. The ongoing need for fuel imports could reduce the current-account surplus and affect foreign reserves, possibly leading to a more unstable foreign-exchange system.
The delays are linked to low crude production, which has been hampered by oil theft and underinvestment. Nigeria’s crude oil production was 1.31 million barrels per day (b/d) in July, below the OPEC+ target of 1.38 million b/d. The state oil firm, NNPC, has struggled to provide the promised 450,000 b/d of oil to the refinery, sold in naira, due to logistical and financial constraints.
The situation is further complicated by International Oil Companies (IOCs) demanding a premium of $3-$4 per barrel for Nigerian crude. Regulators are also hesitant to enforce the Domestic Crude Supply Obligation (DCSO), which requires IOCs to sell crude to local refineries, fearing it might lead to divestment.
The report emphasizes that local fuel production could greatly benefit Nigeria’s fiscal position and currency, given that petroleum products account for 15% to 20% of the country’s import bill. The Dangote refinery, with a capacity of 650,000 b/d, has the potential to reduce the need for fuel imports and stabilize local fuel prices against exchange-rate fluctuations, marking a significant step towards resolving Nigeria’s paradox of being a major oil producer yet reliant on fuel imports.
- …Sets the stage for a future of more possibilities
Wema Bank, Nigeria’s most innovative bank and pioneer of Africa’s first fully digital bank, ALAT, has officially marked the incredible milestone of its 80th anniversary on Friday, May 2nd, 2025.
Celebrated as Nigeria’s oldest indigenous bank, Wema Bank was founded on May 2nd, 1945, as Agbonmagbe Bank Limited; an institution that has now evolved from a single-branch operation aimed at empowering indigenous Nigerians into a formidable force that continues to blaze the trail in Nigeria’s banking and financial industry.
From bridging gaps in access to finance for underserved Nigerians to empowering businesses with insightful financial solutions and support, providing a platform for other industries to thrive and proactively delivering financial solutions tailored to the needs of every Nigerian, Wema Bank has built a legacy of impact for 8 decades. With millions of customers and global presence via 150+ branches and the ALAT App, Wema Bank continues to set the pace in customer-centric innovation and impactful banking.
Extending heartfelt gratitude to the Bank’s stakeholders, Moruf Oseni, the MD/CEO of Wema Bank reiterated the Bank’s commitment to continue going above and beyond in service of its customers in the decades to come. According to him, “Wema at 80 is a milestone that extends deeply into the very roots of the industry, the people and the nation. This is an 80-year-old bank that began to set the pace for indigenous businesses in the depths of colonial rule and has remained resolute in carrying on that mission since 1945, showing the world that ‘Nigerian-owned’ can last, and institutions can be agents of transformation in their own capacity. It’s a journey I am deeply proud of and I cannot celebrate alone”.
“I take this moment to express my sincerest gratitude to every person and institution that has played a part in Wema Bank’s success story. From our customers to shareholders, investors, partners to employees past and present, and every other stakeholder whose efforts run in the veins of this great Bank. We are Wema and I take this moment, on behalf of the Board and Management of the Bank, to reiterate our lifelong commitment to you. Wema Bank is built to last, Wema Bank is built for you and Wema Bank will never relent in delivering optimum value to you. It has been 80 years of impact, and as we look ahead to a future of limitless possibilities, our promise to you remains the same. We Are With You, All The Way!”, Oseni concluded.
Wema Bank’s 80th anniversary has taken the world by storm, with a major highlight being the Wema at 80 Gala Night scheduled to hold in Lagos at 6 p.m. on Friday May 2nd, 2025. Headlined by Afrobeats stars Davido and Wande Coal, Fuji legend Ayuba, vocal sensation Yinka Davies, 9ice and a star-studded lineup of celebrities, dignitaries and stakeholders; the night promises to be one for the books, convening 8 decades of generations in a glamorous ceremony themed ‘Timeless Elegance’.
Anyone can be a part of the Wema at 80 Gala Night by tuning in live at 7 p.m. to the Bank’s YouTube Channel as well as select national TV stations.
The naira appreciated slightly in the parallel market on Tuesday, trading at N1,618 per dollar, an improvement from N1,620 per dollar recorded on Monday.
However, at the Nigerian Foreign Exchange Market (NFEM), the currency depreciated to N1,604 per dollar, compared to N1,599 per dollar the previous day.
Data from the Central Bank of Nigeria (CBN) indicated a N5 drop in the naira’s value at the official window, further reflecting volatility in the forex market.
As a result, the exchange rate gap between the parallel market and the official market narrowed to N14 per dollar, down from N21 per dollar on Monday, signaling a slight convergence between both market rates.
Nigeria’s headline inflation rate surged to 24.23 percent in March 2025, up from 23.18 percent recorded in February, according to the National Bureau of Statistics (NBS).
The figures were released in the bureau’s latest Consumer Price Index (CPI) Report published today. The data indicates a 1.05 percentage point increase month-on-month, and a 4.40-point rise in the CPI, which now stands at 117.34.
The NBS stated, “In March 2025, the headline inflation rate rose to 24.23% relative to the February 2025 headline inflation rate of 23.18%.”
This continued rise in inflation is attributed to persistent food price hikes, supply chain challenges, and currency pressures, according to analysts monitoring economic trends.
The development is likely to influence future monetary policy decisions as economic stakeholders assess the impact on household purchasing power and overall cost of living.
CSOs Back Nigeria’s Clean Energy Push, Applaud ECN’s Commitment
Wema Bank Celebrates 80 Years of Impact
