Energy
Oil Minister Says $70 Oil Price Required To Sustain Nigeria’s Budget


Africa’s most populous nation, Nigeria might need an oil price of $70 per barrel and a production of two million barrels per day to sustain its budget, oil Minister has said.
The Minister of State for Petroleum Resources, Timipre Sylva, said the production cuts by the Organisation of Petroleum Exporting Countries and its allies had helped to stabilise the oil market, adding that all members of the alliance shared the same commitment to balancing supply and demand.
“You can see very clearly that the market is already starting to show signs of rebalancing; it’s stabilising. We believe that maybe, towards the end of this year, we will see a rebalanced market,” he was quoted by Energy Intelligence on Wednesday as saying in an interview.
The OPEC+ production cuts have helped lift the price of the international oil benchmark, Brent crude, from a low of around $20 per barrel in April. It stood at $44.85 per barrel as of 6:40pm Nigeria time on Thursday.
But the recovery appears to have stalled in the mid-$40s, which remains well below the comfort zone of Nigeria and other producers.
Sylva said, “I must tell you that it is very difficult for the country at this time. We cannot possibly carry on with all our activities.
“The president approved a 25 per cent cut in our budget. That’s 25 per cent of everything that we plan to do for this year, out the window before we even started.”
Asked what level of oil prices would sustain the country’s budget, he said production volumes had to be taken into consideration as well as prices, because low production volumes could be just as harmful as low prices.
“I cannot tell you what price will be optimal for the country. It’s not just the price; it’s also the production. … For me, I would say if we produce two million bpd at $70, that would be optimal for Nigeria,” the minister said.
He said the country would make substantial “catch-up” cuts in its oil production in August and September to compensate for producing above its OPEC+ ceiling in May and June.
Energy
Nigeria Loses Billions to Gas Flaring: Expert Urges Adoption of Global Best Practices


Nigeria continues to grapple with the economic, environmental, and social costs of gas flaring despite its status as one of Africa’s top producers of natural gas.
Recent data reveals that in 2024 alone, the country flared natural gas valued at $1.05 billion, equivalent to electricity generation potential of 30.1 thousand GigaWatt hours, enough to drastically reduce the nation’s chronic power shortages.
The penalties associated with gas flaring, estimated at $602 million, remain largely unenforced, raising concerns about regulatory weakness and ineffective oversight.
The Nigerian government has introduced several policies, including the Petroleum Industry Act (PIA) and the Gas Flaring, Venting & Methane Emissions (Prevention of Waste and Pollution) Regulations, 2023, aimed at tackling this menace. Additionally, the Nigerian Gas Flare Commercialization Project (NGFCP) was launched as a market-based solution to allocate flared gas to third-party investors for industrial and power sector use. Yet, implementation challenges have stifled progress.
In an exclusive commentary on the issue, Dr. Saheed Abudu, a researcher and lawyer specializing in Energy and Natural Resources Law and International Investment Law, and former researcher at the Tulane Center for Energy Law, described gas flaring as a symptom of Nigeria’s regulatory inertia. “If Nigeria is to truly end this wasteful practice, it must look beyond its borders and learn from the successful blueprints of other oil and gas powerhouses. The framework of the NGFCP is theoretically sound, but without strong enforcement and political determination, it risks becoming another unfulfilled policy,” Dr. Abudu said.
He noted that the persistent lack of political will, overreliance on International Oil Companies (IOCs), and repeated shifting of flare-out deadlines undermine Nigeria’s credibility. “The continuous revisions of flare-out deadlines—from 2025 now extended to 2030—together with the reluctance of producers to pay fines, underscore a regulatory environment that has failed to hold operators accountable. These delays communicate that compliance is optional,” he emphasized.
Dr. Abudu further highlighted deep-rooted institutional problems. “Significant bottlenecks persist, including administrative delays, overlapping regulatory mandates, and above all, resistance from producers who see flare gas utilization as disruptive to their core oil operations. Inadequate infrastructure for gas gathering and distribution compounds the problem, making many flare sites commercially unviable without massive upfront investments,” he explained.
Drawing comparisons with other resource-rich nations, Dr. Abudu argued that Nigeria must adopt proven strategies. He explained that Norway adopted a top-down approach where no gas utilization plan meant no project approval, and combined this with a stringent carbon tax that forced companies to innovate and invest in capture technologies. Saudi Arabia, through its state-owned oil giant Saudi Aramco, pursued a national strategy that treated gas as a resource, not waste. With a master gas gathering plan and billions invested in infrastructure, flaring was phased out, reflecting the level of corporate-level commitment Nigeria has lacked. Angola, he added, offers the most relevant case for Nigeria. After decades of flaring, Angola rolled out its National Gas Master Plan, partnered with international investors, and, with World Bank support, built the infrastructure needed to monetize gas. Their progress, he said, proves that resource stewardship is possible with political will and foreign partnerships.
Dr. Abudu outlined a roadmap Nigeria could adopt to reverse its losses and position itself as a competitive gas economy. “Nigeria must transition to stricter enforcement of regulations, making flare penalties genuinely punitive rather than symbolic. No new oil project should proceed without a credible gas utilization plan. The government must also act as a catalyst, as Angola did, by incentivizing investment in gas infrastructure and ensuring that producers cannot simply evade their obligations,” he stressed.
He added that empowering third-party investors to participate in gas commercialization is key, but this requires deliberate policies to strengthen the domestic gas market. “The government must make the Nigerian gas market more competitive and attractive for investors. Incentives, security of investments, and legal certainty are crucial. Without these, potential investors will continue to shy away, leaving the problem unresolved,” he said.
Experts agree that ending gas flaring is not just about environmental sustainability but also about unlocking economic potential. If properly harnessed, flared gas could power industries, create jobs, and generate billions in revenue. Dr. Abudu concluded with a stark warning: “The flames burning across the Niger Delta are not merely an environmental hazard; they represent wasted economic opportunities and human development potential. Nigeria cannot afford to treat gas flaring as business as usual. It must move from rhetoric to decisive action.”


… Plant to create 5,000 jobs, produce 100 cubic metres of oxygen, 45 cubic metres of acetylene per hour
… Nitrogen, argon gas; carbon dioxide, CNG Stations in the pipeline
… Dr. Uduji: Mbah, Nehemiah of our time, rebuilding broken walls
…Kanayo O. Kanayo: Security is working in Enugu


Governor of Enugu State, Dr. Peter Mbah, on Thursday, unveiled Nigergas Company Limited, revamped and upgraded by his administration after over three decades of dormancy.
Mbah said Nigergas had so far created direct employment for over one hundred skilled and semi-skilled workers, and would further create over 5,000 indirect jobs across distribution, fabrication, transport and supplies chain.
He stressed that the revival of Nigergas company, which was established in 1962 as part of Dr. Michael Okpara’s after decades of abandonment, was another proof of his administration’s commitment to reviving state-owned moribund assets and grow Enugu State’s economy from $4.4bn to $30bn.
“What we have revived and unveiled today is not simply metal and a network of pipes; it is the restoration of purpose, dignity and productivity to a site that once symbolised Eastern Nigeria’s industrial promise.
“When we speak of the goal to grow our GDP from $4.4bn to $30bn, it is not mere posturing. It is rooted in the conviction that Enugu can become a truly diversified, self-reliant economy, if we muster the will to do things differently to launch us to the future we dream of,” he stated.
On Nigergas’ rehabilitation model, capacity, and expansion plan, Mbah said, “we approved a full rehabilitation scheme and a management model that blends public ownership with private-sector performance discipline.
“The intention was clear: retain public ownership, but run the facility on modern, accountable, commercially viable lines.
“So, today, Nigergas returns to production with modernised equipment and clear technical specifications designed to meet immediate healthcare and industry needs.


“The plant’s installed capacity has been upgraded to produce significant volumes of medical and industrial gases, ensuring steady local supply and reducing dependence on distant, expensive suppliers.
“Crucially, the plant will supply liquid oxygen, medical and industrial oxygen, and acetylene gas to our hospitals, welders, agro-processors and manufacturers, improving clinical outcomes and reducing production costs for businesses that are the backbone of local livelihoods.
“The new plant has a capacity to produce 100 cubic metres of oxygen per hour; and 45 cubic metres of acetylene per hour.
“We will soon bring on stream these additional products: nitrogen; argon gas; carbon dioxide; and CNG stations,” he said.
He maintained that Nigergas’ revival would guarantee access to reliable medical oxygen saves lives, on-demand industrial gases to lower operating costs, speeds turnaround and keeps workshops and factories turning.
“These improvements ripple outward: increased industrial activity strengthens our revenue base, and deepens opportunities for MSMEs,” he said.
He commended the Managing Director of the Enugu State Investment Authority, and the Commissioner for Trade, Investment and Industry, Dr. Sam Ogbu-Nwobod; the engineering firm, Ten Gas Development Ltd (a division of INDEV GROUP and the community leaders of Emene for their roles in resurrecting Nigergas.
speaking, Dr. Ogbu-Nwobodo expressed joy that although the firm established by Dr. Okpara Administration in partnership with Siad Machine Impianti was abandoned for over three decades due to mismanagement, misappropriation of revenue, abuse of company resources, nepotism, and weak corporate governance, Governor Mbah had restored the lost dreams.
The Managing Director, Ten Gas Development Ltd., Chief Chike Madueke, noted that the restored Nigergas would provide training and thousands of employments for the youths of the state.
The Chairman, Enugu State Traditional Rulers Council, Igwe Samuel Asadu; community leader and health consultant, Dr. Joy Uduji; Chairman of Enugu East LGA, Pastor Beloved Dan Anike and a businessman, Engr. George Ndubeze Ugwu, also commended Mbah for not only breathing life into dead state-owned assets, but for also building infrastructure that make lives better and enable businesses to thrive.


“You are the Nehemiah of our time. Like Nehemiah, who came and supervised the rebuilding of the walls of Jerusalem, you have also come to rebuild Enugu State,” Dr. Uduji said.
Speaking, Nollywood veteran actor and movie produce, Kanayo O. Kanayo, said, “It is not praise-singing, security is working here because when I come to make movies here, we usually stay out late into the night at Nike, and we are safe.”
Energy
President Tinubu Commissions WAGL’s 40,000 CBM LPG Vessel in South Korea
…Lauds Company’s Partners for Expanding Africa’s Role in Clean Energy


President Bola Ahmed Tinubu says Nigeria is poised to deliver clean and sustainable energy solutions not just in-country but also across Africa and beyond.
The President made the remarks today at the commissioning ceremony of a 40,000 cubic meters (CBM) Liquefied Petroleum Gas (LPG) vessel, christened “MT Iyaloja (Lagos),” in Ulsan, South Korea.
The vessel owned by WAGL Energy Limited (an NNPC Ltd. /Sahara Group Joint Venture) is a dual-fuel, fully refrigerated LPG carrier. This latest addition brings WAGL’s total LPG vessel capacity to 162,000 CBM. Other vessels in the fleet include MT Africa Gas, MT Sahara Gas, MT BaruMK, and MT Sapet.
Represented by the Minister of State for Petroleum Resources (Gas), Rt. Hon. Ekperikpe Ekpo, the President commended WAGL Energy Limited, NNPC Limited and Sahara Group, for their strategic foresight, technical excellence and unwavering dedication to expanding Africa’s role in the global clean energy value-chain.
In his remarks, Group Chief Executive Officer (GCEO) of NNPC Ltd., Engr. Bashir Bayo Ojulari, described WAGL’s LPG Vessel as a great addition to gas development efforts in Nigeria.
The GCEO, who was represented by the Executive Vice President, Gas, Power & New Energy, Mr. Olalekan Ogunleye, added that the vessel will be crucial in realising the impact of gas in Nigeria’s economic development.
According to him, NNPC Ltd. is deepening its commitment to ensure LPG affordability, availability and access, nationwide.
“NNPC Ltd. is proud to be a major shareholder in this indigenous Company which in addition to the newly commissioned MT Iyaloja (Lagos), owns four (4) other LPG vessels in its growing fleet, delivering over 6 million MT of LPG across West Africa over the last 5 years,” he added.
Also speaking, WAGL’s Chairman/Executive Director at Sahara Group, Mr. Temitope Shonubi, noted that the company’s expansion demonstrates its vision of responsibly driving efforts aimed at bridging the continent’s critical energy infrastructure gap.”
“The addition of MT Iyaloja (Lagos) embodies the spirit of progress and empowerment championed by the iconic Alhaja Abibatu Mogaji, whose legacy we honour. Sahara Group is proud of its partnership with NNPC Ltd. and reaffirms its commitment to partnerships that drive energy access in Africa,” he added.
WAGL’s Managing Director, Mr. Mohammed Sani Bello stressed that the company is dedicated to expanding its integrated supply network across the entire energy value chain.
“WAGL already has plans to further expand the fleet within the next two years with the addition of a Small Gas Carrier and a Very Large Gas Carrier (VLGC),” he added.
The symbolic ribbon cutting of MT Iyaloja (Lagos) named in honour of Alhaja Abibatu Mogaji, MFR, (the late mother of President Bola Ahmed Tinubu), was performed by her grand-daughter, the Iyaloja-General of Nigeria, Alhaja Folasade Mujidat Tinubu-Ojo.
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