Category: General News

In the boardroom of 2026, intellectual property is no longer just a “legal checkbox”, it is the primary currency of the African Continental Free Trade Area (AfCFTA). As African markets integrate at an unprecedented pace, the cost of fragmented trademark protection has become a liability that forward-thinking brands can no longer afford. 

At F.O. Akinrele & Co., we have watched the landscape shift from tedious, country-by-country filings to a more sophisticated, centralized approach. The catalyst? The Madrid Protocol. If your brand hasn’t yet leveraged this system to consolidate its African footprint, 2026 is the year to pivot. 

One Application, One Currency, One Gateway 

The Madrid System, administered by the World Intellectual Property Organization (WIPO), allows a brand owner to protect a trademark in over 130 countries, including a growing list of African powerhouses, through a single international application. 

Why this matters in 2026: 

• Cost Efficiency: Instead of paying separate local counsel fees, translation costs, and individual registry levies in every jurisdiction from Morocco to Mauritius, you pay one set of fees in a single currency (Swiss Francs). 

• Administrative Simplicity: Changes in name, address, or ownership are recorded centrally through WIPO. There is no need to file individual “recordals” in twenty different African registries. 

• The “Silent” Protection: If a national office does not issue a refusal within a set period (usually 12 or 18 months), your trademark is deemed protected in that territory by default. 

The AfCFTA Factor: Why Timing is Everything 

By 2026, the AfCFTA has moved beyond policy into tangible trade flows. A product launched in Lagos is now reaching shelves in Nairobi and Accra faster than ever before. However, this ease of trade also invites “trademark squatting”, the practice where third parties register your brand name in a neighboring country before you arrive. 

The Madrid Protocol acts as a defensive shield. It allows you to “bundle” your African expansion, securing rights in key hubs like Nigeria, Ghana, Kenya, and Egypt simultaneously. This ensures that your brand equity is synchronized with your supply chain. 

Navigating the “Domestication” Nuance 

While the Madrid Protocol is a powerful tool, it is not a “fire and forget” solution. In 2026, certain African jurisdictions still grapple with the “domestication” of international treaties. In some countries, a Madrid registration may be internationally valid but face hurdles in local enforcement if the domestic laws haven’t been perfectly aligned with the treaty. 

Professional Insight: Using the Madrid System without local expertise is like buying a high-performance car but not knowing the local terrain. You need a navigator to manage “Office Actions”, the preliminary refusals issued by national registries and to ensure your international registration is fully enforceable in local courts. 

Secure Your Legacy with F.O. Akinrele & Co. 

As your IP partners, we specialize in “Madrid-Plus” strategies. We help you identify which African markets are best served by the Protocol and where a traditional national filing remains the safer bet for enforcement. 

The African market of 2026 rewards the organized. Whether you are a tech unicorn or a traditional manufacturer, your brand is your most valuable asset. Let’s make sure it’s protected from the Atlantic to the Indian Ocean. 

 

For further enquiries kindly contact the F.O. Akinrele & Co. Patents and Trademarks (IP) Practice Group – info@foakinrele.com 

 

 

For decades, the Nigerian real estate sector was defined by a certain “analog anxiety.” Investors navigated a landscape of dusty ledger rooms, the notorious “missing files,” and the constant shadow of the Omo-Onile (land grabbers). However, as we move through 2026, the narrative has fundamentally shifted. The digital transformation of land titling in Lagos and Abuja is no longer a futuristic goal, it is the new baseline for transparency. 

At F.O. Akinrele & Co., we have observed firsthand how these technological shifts are de-risking the infrastructure and real estate landscape, turning “caveat emptor” into a data-driven certainty. 

Lagos: The e-GIS Revolution 

Lagos State has historically been the most complex real estate market in Sub-Saharan Africa. With the full integration of the Enterprise Geographic Information Service (e-GIS) and the Aumentum Land Administration Portal, the state has moved to eradicate the manual bottlenecks that once invited corruption. 

• Electronic Certificates of Occupancy (e-C of O): The transition to digital titles has drastically reduced the turnaround time for perfection of titles. 

• Real-Time Verification: Through the e-GIS portal, prospective buyers can now conduct instant property searches by address or parcel ID. This “look before you leap” capability has significantly mitigated the risk of multiple-sale fraud in high-growth corridors like Lekki Phase 1 and the Epe axis. 

• Integrated Governance: By syncing the Lands Bureau with the Office of the State Surveyor-General and Physical Planning, the state ensures that every square meter of “Smarter Lagos” is accounted for. 

Abuja: Centralized Precision at AGIS 

In the Federal Capital Territory, the Abuja Geographic Information System (AGIS) remains the gold standard for centralized land administration. In 2026, AGIS has moved beyond mere record-keeping to becoming a sophisticated tool for urban planning and investment security. 

Unlike the fragmented systems of the past, Abuja’s market now benefits from a rigid “Master Plan” adherence enabled by GIS mapping. For investors in emerging districts like Katampe Extension or Jabi, AGIS provides: 

1. Immutable Records: Secure, digital-first registries that are nearly impossible to alter or duplicate. 

1. Streamlined Consent: The process for obtaining the FCT Minister’s consent, a traditional hurdle, is now largely automated, providing a predictable timeline for developers. 

1. Title Hierarchy Clarity: Absolute clarity on the 99-year Right of Occupancy (R of O) ensures that foreign and domestic HNWIs can hedge their capital against economic volatility with confidence. 

 The Investor’s Edge: Why Transparency Matters 

The gains in transparency are driving a “flight to quality.” In 2026, savvy investors are no longer speculating on “bush” land with vague documentation. They are prioritizing Growth Corridors where digital mapping aligns with planned infrastructure, such as the Lagos-Calabar Coastal Highway or the Abuja N16 interchange. 

Professional Insight: While digital tools provide the data, they do not replace the need for sophisticated legal due diligence. Digital errors, though rare, can still occur, and navigating the interface between legacy manual records and new digital entries requires a seasoned legal hand. 

 

Partner with F.O. Akinrele & Co. 

As the digital landscape evolves, our Infrastructure and Real Estate group remains at the forefront of these reforms. We don’t just read the digital registries; we interpret the legal implications of the data to protect your multi-generational assets. 

 

For further enquiries kindly contact the F.O. Akinrele & Co. Infrastructure & Real Estate Practice Group – info@foakinrele.com 

Introduction 

As the clock winds down to the March 31, 2026, deadline, the Nigerian banking landscape is undergoing its most significant structural shift in two decades. Since the Central Bank of Nigeria (CBN) issued its landmark circular in March 2024, the industry has been in a state of high-velocity transformation. For banks that haven’t yet crossed the finish line, this “last-minute” phase is no longer about boardroom strategy. It is a race against time through a dense thicket of regulatory approvals, judicial sanctions, and complex integration. 

The stakes are historic. By the morning of April 1, 2026, the Nigerian financial system will look fundamentally different: a leaner, more capitalized core designed to support the nation’s $1 trillion economy ambition. 

 

The Three Paths to Compliance 

The CBN provided a clear 24-month window for banks to meet the new minimum thresholds: ₦500 billion for International Commercial Banks, ₦200 billion for National Banks, and ₦50 billion for Regional and Merchant Banks. As of early March 2026, the market has settled into three distinct survival strategies. 

1. Capital Injection: The NGX Surge

For Tier-1 and robust Tier-2 players, rights issues and private placements have been the preferred route. We have seen unprecedented activity on the Nigerian Exchange (NGX), with heavyweights like Access Holdings, Zenith Bank, and GTCO successfully raising hundreds of billions in fresh equity. 

However, for those still in the market this late, the challenge is market saturation. With billions already mopped up by early movers, the pool of available local liquidity is tightening. Timing the “all-clear” from the Securities and Exchange Commission (SEC) is now critical. Any delay in the “Basis of Allotment” approval could mean that a bank’s fresh capital isn’t officially “paid-up” by the March 31 cutoff. 

2. Strategic Mergers and Acquisitions: The “Strength in Numbers” Dance

For mid-tier players, M&A is the only viable exit from a capital shortfall. The landmark merger between Providus Bank and Unity Bank served as an early blueprint for the industry. But M&A is not just a commercial handshake; it is a legal marathon. 

The “final stretch” for these banks involves the Court-Ordered Meeting (COM). Under Nigerian law, any scheme of a s (75%) in value of the shares of members present and voting. Following this, the arrangement for a merger must be approved by a majority representing three-quarter Federal High Court must “sanction” the scheme. With less than three weeks to go, any judicial delay or shareholder litigation could derail a multi-billion naira combination. 

3. License Re-categorization: The Strategic Retreat

For some, discretion is the better part of valor. We are seeing a small but significant number of banks opting to downgrade their licenses, shifting from National to Regional or Merchant status. This allows them to stay within their capital means (₦50 billion vs ₦200 billion) while focusing on specific economic hubs or niche sectors. While this preserves the “going concern” status of the bank, it requires a surgical restructuring of branch networks and a total re-calibration of their 2026-2030 business plans. 

The Regulatory “Bottleneck”: The Final 21 Days 

The administrative hurdles in the final three weeks of March are notoriously fraught with delay. Three key gatekeepers hold the keys to survival: 

• FCCPC Clearances: For merging entities, the Federal Competition and Consumer Protection Commission (FCCPC) must ensure the union doesn’t trigger anti-competition “red flags.” In a consolidating market, the definition of “market dominance” is being tested in real-time. 

• CBN Final Approval: Obtaining an Approval-in-Principle (AIP) is not enough. The transition to a final operational license requires the CBN to verify that the capital raised is “clean”, derived from legitimate sources and strictly consisting of paid-up share capital and share premium, excluding retained earnings. 

• The Human Element: This is often the most overlooked legal hurdle. Heads of Terms (HoT) are currently being finalized with sensitive “Golden Parachute” clauses, board dissolution agreements, and management transition terms. Reconciling the egos and cultures of two merging boards is often harder than reconciling their balance sheets. 

 

Conclusion: Survival of the Agile 

As of March 7, 2026, the CBN reports that 30 banks have already met the mark, with several others in the final verification stage. The banks that thrive beyond the March 31 deadline will not necessarily be those that were the largest in 2024, but those that deployed the most agile legal and financial counsel to navigate this two-year gauntlet. 

At F.O. Akinrele & Co., we understand that in this final stretch, compliance is no longer a goal; it is a prerequisite for existence. The era of “analog” banking is over; the era of the capitalized, resilient, and transparent Nigerian bank has begun. 

 

Disclaimer: This article is provided for informational purposes and does not constitute legal advice. For specific inquiries regarding the Nigerian Banking and Finance sector, please contact our Banking, Corporate Finance, Structured Finance, Securities & Capital Markets Practice Group. 

As the February 27, 2026, deadline for pre-qualification looms, the Nigerian upstream sector finds itself at a pivotal crossroads. Launched by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) on December 1, 2025, the current licensing round is not merely another bid cycle; it is a high-stakes stress test of the Petroleum Industry Act (PIA) 2021 and Nigeria’s ability to remain “irresistible” in a tightening global capital market. 

With 50 blocks on offer spanning onshore, shallow water, deep offshore, and frontier basins, the NUPRC is targeting an ambitious $10 billion in new investment. For the legal and commercial teams of prospective bidders, the “final countdown” requires more than just financial readiness; it demands a deep alignment with a new, transparent, and digitally-driven regulatory philosophy. 

1. The Numbers: 50 Blocks, One Goal

The 2025/2026 round is significantly larger in scale than the 2024 cycle. The NUPRC has curated a portfolio designed to balance “quick-win” brownfield assets with high-reward frontier exploration. 

• Onshore & Shallow Water: 34 blocks (focused on rapid production ramp-up). 

• Frontier Basins: 15 blocks (aimed at long-term reserve replacement in basins like the Anambra, Dahomey, and Chad). 

• Deep Offshore: 1 block (representing the “crown jewel” for high-cap majors). 

The regulator’s objective is clear: add 2 billion barrels of oil to national reserves and boost daily production by 400,000 barrels. 

2. Lowering the Barrier to Entry: Signature Bonuses

In a pragmatic shift from the “highest bidder wins” era, the NUPRC has capped signature bonuses between $3 million and $7 million. Historically, exorbitant signature bonuses acted as a front-end tax that drained capital before a single drill-bit hit the ground. By lowering this hurdle, the Commission is signaling that it values work programme commitment and speed to first oil over immediate treasury gains. 

Legal Insight: While the entry fee is lower, the Performance Security (bank-issued bonds for 5% of the bonus) and the rigour of the Work Commitment are the new benchmarks for success. 

3. The “Drill or Drop” Mandate

Investors should pay close attention to the reinforced “Drill or Drop” policy. Under the PIA, the era of “warehousing” assets holding onto fallow acreage without active exploration is over. The 2025/2026 guidelines include strict relinquishment clauses. If a licensee fails to meet the minimum work programme within the initial three-year (onshore) or five-year (deepwater) term, the NUPRC is now empowered to revoke the license and re-award it to a more “vigorous” operator. 

4. Environmental, Social, and Governance (ESG)and the Host Community Development Trust (HCDT) 

Beyond technical and financial capacity, the 2025/2026 round places unprecedented weight on sustainability and social license. Bidders must demonstrate clear decarbonization objectives and a robust framework for implementing the Host Community Development Trust (HCDT).

• Compliance is Mandatory: No bidder will scale the technical evaluation without a credible plan to remit the statutory 3% of operating expenses to host communities. 

• The Benefit: Proper HCDT implementation is being marketed as a risk-mitigation tool to curb the oil theft and pipeline vandalism that have historically plagued the Niger Delta. 

5. Financial and Technical Hurdles

The NUPRC has set a high bar for “weak firms.” The financial capacity thresholds are non-negotiable: 

• Deep Offshore: Minimum average annual turnover or cash-at-bank of $100 million.

• Onshore/Shallow Water: Minimum of $40 million.

• Technical Track Record: Bidders must prove at least three years of experience in subsurface, drilling, and production management. 

 

Strategic Advice for Bidders 

As we move toward the Technical and Commercial Bid stage (March 17 – June 12, 2026), the following strategic considerations are paramount: 

• Consortium Building: For indigenous players, the NUPRC allows for the aggregation of financial capacity through consortia. Choosing the right technical partner is now more critical than the bid price itself. 

• Data Prying: The digital portal is the primary interface. Early data acquisition from accredited vendors is a prerequisite for a compliant bid. 

• Contractual Flexibility: Winners have the option to elect between a Concession or a Production Sharing Contract (PSC) framework. This choice will define the fiscal trajectory of the asset for the next 20 years. 

The Road Ahead 

The NUPRC plans to conclude the round with a Commercial Bid Conference in July 2026, with final ministerial approvals by October 2026. This aggressive timeline reflects a government in a hurry to monetize its hydrocarbon wealth before the global energy transition makes such assets harder to finance. 

For the modern investor, the message is simple: Nigeria is open for business, but only for those who are technically competent, financially solvent, and socially responsible. 

2025 Model Production Sharing Contract (PSC) 

The 2025 Model Production Sharing Contract (PSC), is designed to govern the 2025/2026 Nigeria Licensing Round. It incorporates the latest provisions from the Petroleum Industry Act (PIA) 2021 and the 2025 Executive Orders on upstream competitiveness. 

Summary of key fiscal and operational parameters  

The 2025 Model PSC shifts from a high front-end load to a production-linked revenue model to de-risk the exploration phase. 

• Signature Bonus: Rationalized to a range of $3 million – $7 million, significantly lower than historical rounds to encourage entry. 

• Cost Recovery Limit: Capped at 70% of gross production. This allows contractors to recover capital (CAPEX) and operating (OPEX) costs more aggressively in early years. 

• Dual-Taxation Structure: 

• Hydrocarbon Tax (HT): 15% for Petroleum Prospecting Licences (PPLs) and marginal fields; 30% for Petroleum Mining Leases (PMLs) in onshore/shallow water. 

• Companies Income Tax (CIT): Fixed at 30%. Deepwater operations remain HT-exempt but subject to CIT. 

• Production Tax Credits (PTC): New incentives provide credits of up to $4.50/bbl for crude and $1.00/kcf for non-associated gas (NAG), scaled by reserve size. 

 

2. Profit Sharing & Revenue Ratios

The “Profit Oil” and “Profit Gas” (production remaining after Royalty and Cost Oil) are split between the Government and the Contractor. 

 

3. Operational & Compliance Mandates

The NUPRC has introduced stricter “Drill or Drop” provisions to eliminate asset “warehousing.” 

• “Drill or Drop” Policy: PPL holders are strictly bound to their committed Work Programme. Failure to commence drilling or meet appraisal targets within the initial 3-year term (onshore) or 5-year term (deepwater) leads to automatic relinquishment. 

 

 

Disclaimer: This article is provided for informational purposes and does not constitute legal advice. For specific inquiries regarding the 2025/2026 Licensing Round or the Petroleum Industry Act, please contact our Energy, Oil & Gas and Natural Resources Practice Group. 

ExxonMobil Bets On Nigeria’s Deepwater Oil Fields With A $1.5billion Investment Between Q2 2025-2027

ExxonMobil sequel to its divestment of its onshore assets to Seplat Energy, has affirmed its long-term commitment to Nigeria’s oil and gas sector with a planned $1.5 billion investment in deepwater exploration and development projects, a move set to reinforce confidence in the country’s upstream potential. 

The planned investment, which will be executed between Q2 2025 and 2027, will focus primarily on revitalizing production at the Usan deepwater oil field. 

The oil major has indicated that a Final Investment Decision (FID) is expected in late Q3 2025, pending the final approval of the Field Development Plan (FDP), along with internal and partner funding approvals. 

In addition to the Usan field, ExxonMobil also revealed intentions to accelerate development activities in other key deepwater assets, including the Owowo and Erha fields. These developments are part of a broader strategy to strengthen its operational footprint in Nigeria and support the country’s drive for increased production. 

ExxonMobil expresses support for NUPRC’s “Project 1 million Barrels” initiative  

Mr. Harris also expressed ExxonMobil’s support for NUPRC’s “Project 1 Million Barrels” initiative, which aims to boost Nigeria’s crude oil production capacity to 2.4 million barrels per day in the medium term. He emphasized the importance of strategic collaboration between operators and regulators in achieving this ambitious target. 

Responding to the development, the CCE of NUPRC, Engr. Gbenga Komolafe welcomed the announcement, describing ExxonMobil’s renewed commitment as timely and crucial for Nigeria’s upstream growth. He reiterated the Commission’s role in facilitating a stable and transparent regulatory environment, citing the importance of investor confidence in the success of the Petroleum Industry Act (PIA) reforms. 

The discussions during the courtesy visit also touched on key sectoral issues, including compliance with the Domestic Crude Supply Obligation (DCSO) and the enforcement of Section 109 of the PIA, which introduces the principle of “willing buyer, willing seller” for crude oil transactions within the domestic market. In his new capacity as Chairman of the Oil Producers Trade Section (OPTS), Mr. Harris pledged to use the platform to foster stronger collaboration between industry players and the NUPRC, with a focus on addressing regulatory challenges and unlocking further investment opportunities in the sector. 

ExxonMobil’s renewed capital injection into Nigeria’s deepwater assets is expected to stimulate job creation, technology transfer, and increase national oil production, ultimately contributing to improved foreign exchange earnings and energy security. 

Afreximbank launches $3 billion Revolving Oil Trade Financing Programme to boost
Intra-African, Caribbean petroleum trade.

This initiative, aimed at boosting the purchase of refined petroleum products between African and Caribbean countries is designed to address Africa’s significant reliance on imported refined petroleum products from outside the continent, which currently costs approximately $30 billion annually due to insufficient local refining capacity. 

Key aspects and expected impacts of the program include: 

• Promoting Intra-African and Caribbean Trade: The program specifically finances the purchase of refined petroleum products by African and Caribbean oil buyers from refineries operating in Africa. This is expected to facilitate trade flows within these regions, reducing dependency on extra-regional imports. 
• Leveraging Growing Refining Capacity: Afreximbank has been a major financier in developing refining capacity across Africa. This program aims to leverage these investments, such as the Dangote Refinery in Nigeria, the Lobito and Cabinda Refineries in Angola, and the refurbishment of the Port Harcourt Refinery, among others. The bank aims to help create over 1.3 million barrels per day (bpd) of refining capacity in Africa, transforming the Gulf of Guinea into a significant refining hub. 
• Revolving Facility: As a revolving facility, the $3 billion is expected to finance a much larger volume of trade, estimated between $10 billion and $14 billion in intra-African petroleum imports over time.
• Targeted Beneficiaries: The program will primarily provide critical trade finance to oil traders (both African and international), banks, and governments (including their ministries of finance or petroleum/energy and state-owned enterprises) mandated to import refined petroleum products.
• Product Focus: The key products covered include Premium Motor Spirit (PMS), Automotive Gas Oil (AGO), Heavy Fuel Oil (HFO), Jet Fuel, and Kerosene. 
• Alignment with AfCFTA: This initiative strongly aligns with the objectives of the African Continental Free Trade Area (AfCFTA) agreement, aiming to facilitate intra-African trade, promote industrialization, and create jobs.
• Energy Security and Economic Resilience: By strengthening regional value chains and reducing import dependency, the program seeks to advance energy security and foster economic resilience within Africa and the Caribbean.

• Multiplier Effect: Beyond direct trade, the program is anticipated to have a multiplier effect on the downstream petroleum value chain, catalyzing investments in shipping, marine logistics, cargo insurance, and other ancillary services.

Afreximbank continues to play a significant role in promoting trade and economic integration across Africa and with the Caribbean through various initiatives, including the Pan-African Payment and Settlement System (PAPSS) and the AfriCaribbean Trade and Investment Forum.

Nigeria’s power sector is set for a potential transformation with the establishment of the National Integrated Electricity Policy. This policy, aimed at reshaping the country’s power sector, has already been set in motion, addressing key issues impacting growth within the industry.

The policy, backed by the revised Electricity Act of 2023, offers a glimmer of hope for a sector plagued by persistent challenges. From grid limitations to mounting debts, the power sector in Nigeria has long been at a crossroads, seeking sustainable solutions to enhance electricity generation, distribution, and overall efficiency. One of the critical focuses of the policy is to introduce new players into the sector’s value chain, with states like Lagos gearing up to enhance their regulatory framework to attract investments and improve tariffs.

Additionally, the policy recognizes the importance of incorporating newer sources of electricity, particularly renewable energy, to diversify the energy mix and increase reliability. However, amidst the optimism surrounding the new policy, there are pressing issues that demand immediate attention. The staggering debt owed by generation companies stands at a monumental $4 trillion, posing a significant threat to the sector’s stability and future growth. This debt, accumulated over time, highlights the financial strain experienced by key players within the industry.

The government’s commitment to clearing this debt and providing assurances to stakeholders is a crucial step towards resolving this critical issue. The policy’s call for cost-reflective tariffs and targeted subsidies for low-income consumers aims to create a more equitable and sustainable pricing framework. However, the implementation of these measures must be accompanied by improvements to the grid infrastructure to ensure reliable power supply across all consumer segments. Despite the challenges ahead, there is a growing recognition of the need to prioritize grid enhancement to meet the increasing demands of consumers and businesses.

The urgency to ‘fix the grid’ resonates as a core theme in discussions about the future of Nigeria’s power sector. While the timeline for grid improvements remains uncertain, stakeholders emphasize the paramount importance of this initiative for the sector’s viability and long-term success.

As the government explores various options to address the mounting debt and enhance the sector’s performance, a comprehensive strategy that includes fiscal discipline, infrastructure investments, and stakeholder collaboration will be essential. Private sector industry operators recommend cost-cutting measures within the government as a precursor for broader systemic changes required to drive sustainable growth in the power sector.

In conclusion, the Nigeria’s National Integrated Electricity Policy signifies a pivotal moment in the country’s energy landscape. Nigeria has the opportunity to unlock its power sector’s potential and pave the way for increased efficiency, reliability, and investment.

 

For further enquiries, kindly contact the F.O. Akinrele & Co. Energy, Oil & Gas and Natural Resources Group

Adedoyin Odelana – adedoyin_odelana@foakinrele.com

Jeremiah Adegboro – jeremiah_adegboro@foakinrele.com

NNPCL INITIAL PUBLIC OFFER (IPO) AT FINAL STAGE 

The Nigerian National Petroleum Company Limited (NNPC Ltd) is in the final stages of listing on the capital market as it prepares for an Initial Public Offering (IPO) in line with the Petroleum Industry Act (PIA) 2021. 

This was disclosed by Mr. Olugbenga Oluwaniyi, the company’s Chief Finance and Investor Relations Officer, on Thursday 27 March 2025. 

He revealed that NNPC Ltd has commenced an “IPO Beauty Parade”, a strategic engagement with prospective partners to ensure compliance with capital market regulations ahead of its planned listing. 

An IPO, which allows institutional investors to purchase shares in a company for the first time, will officially introduce NNPC Ltd to the stock market. 

Three key areas where partnerships are needed were mentioned: Investor Relations, IPO Readiness Advisers, and Investment Bank Partners. 

The selection of partners will be based on the strength of their proposals and their ability to provide comprehensive support in these areas. 

Under the Petroleum Industry Act (PIA) 2021, NNPC Ltd is required to transition from a state-owned entity to a fully commercial enterprise. This transformation also mandates compliance with the Company and Allied Matters Act (CAMA) 1990, ensuring transparency, efficiency, and profitability. 

This move represents a major shift in Nigeria’s oil and gas industry. By opening up to investors, NNPC Ltd aims to enhance corporate governance, attract private sector investment, and boost operational efficiency. 

NNPC Ltd is in the final stages of preparing for its IPO, a move that will significantly impact the Nigerian economy and the global oil and gas market. 

The ongoing IPO Beauty Parade will determine the best partners to guide the company through this crucial phase, ensuring a successful public offering. 

NNPC  is following the example of several state-owned oil firms that have gone public and turned out to be huge global successes. Such as  Saudi Aramco (Saudi Arabia), China National Offshore Oil Corporation (CNOOC), Sinopec (China), Gazprom (Russia), National Iranian Oil Company (NIOC) and Petrobras (Brazil). 

OIL PRICES 

Nigerian Bonny Light crude oil is currently trading at approximately  $74 per barrel. While oil prices have shown some volatility recently, with Brent crude futures (the benchmark pricing for Nigerian Bonny Light crude) recently settling at around $73.63 per barrel, Reuters reports that they are generally expected to remain in the mid-$70s range in the coming months, with potential for further increases due to factors like geopolitical tensions and supply constraints.  

Geopolitical tensions are exemplified by the intensifying conflicts in the Middle East, potentially leading to a “geopolitical premium” in crude prices.  

Global crude oil supply will invariably be impacted by new U.S. sanctions on Iranian crude oil, which could remove significant volumes from the market and drive oil prices upward.  

OPEC+ has also announced plans for gradual production increases however, it is anticipated that they will produce less than their announced targets to limit increases in global oil inventories.  

The February 2025 crude oil production data in Nigeria shows 1,465,006 BPD, which is lower than January 2025 but higher than October 2024 by 9%. This remains well below Nigeria’s daily production capacity and although daily production is limited within the OPEC+, Nigerian Oil Production Quota of 1.5mbpd currently applicable between June 2, 2024 and December 2025. 

The federal government has remained upbeat about the fresh upward trajectory of the country’s oil and gas sector, disclosing that an additional $2 billion in new investments would be expected by the end of the first quarter of 2025, a few months after Shell commenced development of the $5 billion Bonga North deepwater project. 

Additionally, 74 Chinese companies have indicated their interest in investing in Nigeria’s oil and gas sector. These companies are part of the 216 companies from China that are interested in investing in various sectors of the country’s economy, according to a statement issued by the Nigerian Upstream Petroleum Regulatory Commission on Monday. 

The Chairman of the House of Representatives Committee on Nigeria-China Relationship, Jaafaru Yakubu, disclosed this during a recent meeting with the Chief Executive of the NUPRC, Gbenga Komolafe. The commission met with and briefed the management of NUPRC on the ongoing efforts by the Federal Government to enhance the trade balance between Nigeria and China and to fostering an investor-friendly environment 

Following the recent signing of the Nigeria-China Relationship Agreement, a total of 216 Chinese companies have expressed their interest in investing in Nigeria. 

“Out of these, 74 companies are specifically focused on the oil and gas industry, signaling a major boost for the sector. 

It was stated that one of the key initiatives driving this engagement is the upcoming Nigeria-China Summit, where stakeholders from both countries will explore investment opportunities. 

NUPRC’s Target: 

The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) has set a production target of at least 2.1 million barrels of oil per day (MBOPD) by 2025.  

NUPRC’s Initiatives: 

The commission has introduced a two-phase metering regulation to enhance accurate hydrocarbon measurement and production allocation.  

Notwithstanding a recent drop in production in 2025, since the launch of the 1MBOPD Incremental Initiative in October 2024, Nigeria’s average crude oil production has increased significantly by 250,000 barrels per day, rising from 1.5 million barrels per day (MBPD) to 1.75 MBPD.  

For further enquiries kindly contact the F.O. Akinrele & Co. Energy, Oil & Gas and Natural Resources Group – info@foakinrele.com 

 

The overarching objective of port development in Nigeria is to improve port infrastructure, by focusing on improving infrastructure, efficiency, and technology to boost economic growth and facilitate trade, with a goal of Nigeria becoming a regional transshipment hub. 

 The Nigerian maritime sector has over the past 2 years undergone several developments. These include the introduction of Naira-based petroleum product sales by the NPA, the establishment of a One-Stop-Shop for efficient coordination, the appointment of new port managers, and the construction of inland dry ports like the Gateway Inland Dry Port in Ogun State.  

 In 2025, key developments in Nigeria’s maritime sector include efforts to improve maritime safety and security, infrastructure upgrades, and promoting indigenous shipowners, with initiatives like the Deep Blue Project and the Nigerian Maritime Industry Working Group (NIWG) playing a crucial role. 

 The following are a more detailed look at some key developments from 2024 -2025: 

 Safety and Security 

The Nigerian government and the Nigerian Maritime Administration and Safety Agency (NIMASA) have been working to enhance maritime security, including initiatives like the Deep Blue Project and collaboration with the Nigerian Navy to combat piracy and other maritime crimes.  

 

Safety Standards 

NIMASA has focused on enforcing safety standards, training, and awareness campaigns to educate operators and passengers on safety practices.  

 

Marine Environmental Pollution 

The government is taking measures to address marine pollution and protect the environment, including efforts to prevent oil spills and other forms of pollution.  

 

Infrastructure and Development. 

Port Modernization and Efficiency 

The objective is to combat major challenges of infrastructural deficiencies, corruption and inefficiency within the port sector. 

Infrastructure Challenges 

The lack of adequate infrastructure, including roads and rail networks, has hampered port operations.  

 

Capacity Constraints 

 Ports have struggled to handle the increasing volume of cargo, leading to congestion and delays.  

 

Infrastructure Development 

 Efforts are underway to upgrade Nigeria’s six ports namely Apapa, Tin Can Island (both in Lagos), Onne, Port Harcourt (both in Rivers State), Warri (in Delta State), and Calabar (in Cross River State) to decongest traffic, and attract larger vessels, with public-private partnerships encouraged for port modernization and infrastructure development with the overall objective of revenue generating and efficiency.  

 

The critical aspects of the port modernization are:  

 Rehabilitation and Renovation: The government is prioritizing the rehabilitation and renovation of existing port facilities, including quay walls, berths, and storage areas.  

 

Deep-Sea Ports: Development of deep-sea ports to accommodate larger vessels and modern shipping trends is a key focus.  

 

Rail Linkages: Establishing rail linkages to all ports is crucial for efficient cargo transportation and intermodal synergy.  

 

Technology and Automation 

 Digitalization: The Nigerian Ports Authority (NPA) aims to fully digitalize port operations by 2025.  

 E-payment and E-SEN: Implementing e-payment and Electronic Shipping Notice (E-SEN) systems for streamlined processes.  

Port Service Support Portal: Standardizing cargo handling and import-export operations through a portal to improve efficiency and transparency.  

 

Efficiency and Capacity 

 Improved Turn-Around Time: Efforts are underway to reduce vessel turn-around time and cargo dwell time in ports.  

 Enhanced Cargo Handling: Modernizing cargo handling equipment and procedures to improve efficiency.  

 

Private Sector Participation 

 Concessioning of Terminals: The government has implemented a policy of concessioning port terminals to private operators to improve efficiency and attract investment.  

 Public-Private Partnerships: Encouraging public-private partnerships for infrastructure development and modernization.  

 

Private Sector Participation – Specific Projects 

Badagry Deep Sea Port: A deep-sea port project in Badagry is in the pipeline, awaiting Federal Executive Council approval.  

Lagos Ports Modernization Project: The NPA is collaborating with ITB-HITECH Joint Venture to modernize the Lagos ports.  

 

Private Sector Participation – Key Players 

 The key players are;

 Nigerian Ports Authority (NPA): The government agency responsible for developing, owning, and operating ports and harbors.  

 

Federal Ministry of Transportation: Oversees the port sector and implements policies for modernization.  

 

Private Terminal Operators: Companies that operate port terminals under concession agreements. 

  

Nigerian Shippers Council: A government agency that promotes the interests of shippers and works towards improving port efficiency.  

 

 Floating Dock Project 

 NIMASA is partnering with the Nigerian Ports Authority (NPA) on the Floating Dock Project, which aims to provide economic benefits through employment and training opportunities.  

 

Investment in Maritime Infrastructure 

The government is investing in maritime infrastructure, including the acquisition of specialized mission patrol aircraft and vessels, as well as a command and control center.  

 

Indigenous Shipowners and Economic Growth. 

Empowering Indigenous Shipowners 

 The government is working to empower indigenous shipowners and increase local tonnage in the maritime sector with particular focus on the following areas: 

Cabotage Act 

The Cabotage Act reserves the commercial transport of goods and services within Nigerian coastal and inland waters to vessels flying the Nigerian flag owned by Nigerians and built in Nigeria.  

 

Marine Tourism 

NIMASA is promoting marine tourism as a key area for economic development, urging stakeholders to invest in relevant areas.  

 

Manpower Development 

NIMASA is focusing on manpower and human capacity development, including the training of seafarers and naval architects.  

 

NIMASA NSDP 

The Nigerian Seafarers Development Programme (NSDP) was created by NIMASA in 2008 with the mandate to train Nigerian youths to become seafarers and naval architects.  

 

 For further enquiries kindly contact the F.O. Akinrele & Co. International Trade, Shipping & Transport Group – info@foakinrele.com 

Between 2023 -2024, Nigeria experienced extreme exchange rate volatility with unprecedented erosions of Naira values against foreign currencies particularly, the US Dollar, GBP Sterling and the Euro. 

At the commencement of the term of the current government in May 2023, a floating exchange rate regime was introduced allowing market forces to determine the value of the Naira. The intentions were very well placed in view of the prevailing regime of multiple exchange rates in the previous government from 2015 – 2023. 

Under the previous government, unbridled foreign borrowing and a multiple exchange rate regime resulted in the erosion of foreign and domestic investor confidence. Huge gaps had arisen between the official and unofficial rates causing severe shortages of foreign exchange. This, coupled with the effect of COVID, signaled a dysfunctional economy. 

In May 2023, at the inception of the current floating exchange rate regime, the exchange rate was N460.70 – $1.  

The unified multiple exchange rate window was established to enhance efficiency in the FX market but initially, the rates significantly unraveled, dropping to N 1390.00 – $ 1 in May 2024 and then to an all time low at N 1,738.74  – $ 1 in November 2024 with the inflation rate at 34.8%. 

Heavy speculation between unlicensed persons in Naira and hard currencies resulted in unprecedented volatility and erosions in Naira values in turn causing major dislocations to domestic and foreign commerce in a still heavily import dependent economy.  

The situation was compounded by other factors including the removal by the Federal Government of fuel subsidies in 2023 and the prevalence of large volumes of Naira in circulation through monetary policies of the previous regime. 

Attempts to Stabilise Exchange Rates 

Significant attempts to stabilise the Naira and improve foreign exchange liquidity have been made. They include; most significantly, the clearing of the vast overhang of Nigeria’s due dollar obligations of approximately $7 billion. The clearing of the vast forward payment of $6.8 billion for Naira. The successful clearing of the aforementioned have given foreign investors comfort and confidence by easing prolonged pressure on the Naira, continually burdened by speculative demand for the dollar. 

There have also been oversight and regulatory and policy interventions by the CBN in the Official Market through a series of guidelines, such as the Central Bank of Nigeria’s (CBN) order to Banks to sell their excess dollar stock and maintain certain levels of prudential thresholds. 

Another key measure was the introduction in February 2024 of a new policy restricting international oil companies (IOCs) from repatriating 100 percent of their foreign exchange proceeds abroad immediately, limiting them to only 50 percent of their proceeds immediately while the other 50 percent will be repatriated 90 days from the day of inflow. 

Additionally, measures have also been taken to prevent foreign currency racketeering, foreign exchange rate manipulation, money laundering and the financing of terrorism by stopping the proliferation of unregulated transactions through robust monitoring a number of Bureaux De Changes (BDC), under the regulatory guidelines titled  “REVISED REGULATORY AND SUPERVISORY GUIDELINES FOR BUREAU DE CHANGE OPERATIONS IN NIGERIA.” 

 The aforementioned cluster of measures individually and cumulatively laid the foundation for the stabilisation of the foreign exchange market. 

Electronic Foreign Exchange Matching System (EFEMS) 

 The EFEMS initiative, which was officially introduced on October 3, 2024, represents the boldest and most far reaching move by the CBN to address longstanding issues of speculation and lack of transparency in the foreign exchange market. It encourages compliance with all rules that pertain to making the foreign exchange market open and transparent to investors. After a test run in October-November 2024, it became fully operational in December 2024.  

EFEMS requires all foreign exchange transactions to be conducted through this platform and therefore enables real-time order matching among banks and ensuring supply-demand data is openly available.  

The objective of EFEMS is to reduce speculative activities and eliminate market distortions, allowing the CBN to exercise regulatory oversight and effectively regulate the FX market. 

The CBN also launched the Nigerian Foreign Exchange (FX) Code, a comprehensive guideline aimed at ensuring transparency, integrity, and accountability among Authorised Dealers.  

The FX Code introduces six core principles: Ethics, Governance, Execution, Information Sharing, Risk Management and Compliance, and Confirmation and Settlement Process.  

The code supports the overall objective of EFEMS by mandating banks to show their real-time quotes and matching orders and promoting a fair and robust FX market, leading to more transparency and efficiency.  

The CBN Governor recently stressed that the reforms of 2023-2024 have yielded tangible results with remittances through International Money Transfer Operators (IMTOS) rising 79.4 per cent in the first three quarters of 2024 to $4.18 billion, compared to $2.33 billion in the same period of 2023.  

The positive effects of the foregoing basket of measures have been reflected in Nigeria’s external reserve, which grew by 12.74 per cent, reaching US$40.68 billion at the end of 2024. 

For further enquiries kindly contact the F.O. Akinrele & Co. Corporate, Foreign Investment and Capital Markets Group – info@foakinrele.com