The Federal Government plans to supply the Dangote refinery with up to 400,000 barrels of Nigerian crude oil daily under its naira-for-crude agreement, as reported by Bloomberg. This initiative will be implemented over the next two months, totaling 24 million barrels between October and November 2024.

The deal is expected to enhance the refinery’s operations and significantly impact the local oil market by reducing Nigeria’s crude exports. The Dangote refinery, the largest in Africa, will require 13 to 14 shipments from Nigeria’s typical monthly crude cargo of about 50, potentially lowering national exports to below 1 million barrels per day.

Although some shipments may face delays, the planned supply is much larger than the 255,000 barrels a day the refinery received during the first half of the year. As the refinery approaches full capacity, Nigeria may finally reduce its reliance on costly oil product imports, impacting the West African gasoline and diesel markets.

Lagos State Governor Babajide Sanwo-Olu and Landmark Centre CEO Paul Onwuanibe held a meeting today within the Landmark facility. This encounter underscores Lagos’ efforts to partner with key industry leaders to boost local business, events, and tourism sectors, highlighting the governor’s commitment to making Lagos a more dynamic economic hub. Landmark Centre, known for hosting major events, aligns with Sanwo-Olu’s vision for infrastructure development and urban innovation in the state.

The Minister of Power, Adebayo Adelabu, has asserted that Nigeria boasts some of the lowest electricity prices in Africa, despite the rising energy costs that many citizens are currently facing.

This statement was made during a recent meeting with Tosin Adeyanju, the Secretary of the Lottery Trust Fund, in Abuja, where the minister emphasized the government’s commitment to addressing the challenges of food and energy security.

Adelabu highlighted that both food and energy security are pressing issues globally, affecting many nations, including Nigeria.

He stressed the importance of patience among Nigerians, reassuring them that the government is dedicated to improving their welfare and addressing the difficulties they encounter in daily life.

As of July 1, 2024, electricity distribution companies in Nigeria have set their rates at N209.5 per kilowatt-hour for customers in Band A, who typically enjoy 20-22 hours of service each day.

This pricing follows a significant tariff increase approved by the Nigerian Electricity Regulatory Commission earlier this year, which raised rates from N66 to N225 per kilowatt-hour.

Adelabu’s comments come at a time when many Nigerians are struggling with increased energy costs across the board, including petrol and diesel prices.

The minister’s assertion that Nigeria’s electricity is the cheapest in Africa stands in contrast to the higher rates in countries like Senegal and Togo, where electricity costs are considerably more expensive, priced at N296.10 and N353.68 per kilowatt-hour, respectively.

However, the minister’s claim also comes with a caveat, as electricity prices in neighboring countries such as Ivory Coast and Ghana are lower, standing at N195.76 and N205.62 per kilowatt-hour, respectively.

This context raises questions about the overall affordability of electricity in Nigeria compared to other nations.

In summary, while Minister Adebayo Adelabu insists that Nigeria’s electricity prices remain competitive within the African context, the ongoing challenges of rising costs for energy and essential services underscore the need for continued government efforts to ensure that the welfare of Nigerians remains a priority.

The government is expected to explore ways to balance affordable energy rates with the need for sustainable growth in the energy sector, all while addressing the broader issues of food and energy security that impact the nation.