Business
NIGERIA SEEKS SOLUTIONS TO NIGER DELTA CRISIS, OIL INDUSTRY CHALLENGES
A one-day symposium on the Nigerian Petroleum Industry: The Way Forward, was organized by Classmasters Limited, publishers of Development Agenda Magazine, at Rockview Hotel, Abuja. The event brought together stakeholders, policymakers, and experts to discuss the challenges facing the oil industry and the Niger Delta region.
Chief Paddy Ezeala, Chief Executive of Classmasters, stated that the program aimed to provide positive solutions to the problems plaguing the Petroleum Industry and foster its development. He emphasized the need for more interactive events, citing the Niger Delta region as a major example.
Professor Kayode Soremekun, of the Department of Political Science, Lagos State University, delivered the first keynote address, titled “Nigeria, Oil and The Global Cabal.” He analyzed the responses of the state to the Niger Delta problem, highlighting the establishment of the Niger Delta Development Board in 1960 and its ineffectiveness.
Soremekun noted that the board was not established until 1960 and made no significant impact in its six years of existence. He also discussed the Presidential Task Force (PTF) set up by the Shehu Shagari administration in 1979, which was allocated 1.5% of the Federation Account to address the region’s peculiarities.
The professor emphasized that the 1.5% allocation represented neglect and indifference towards the crises in the Niger Delta. He compared Nigeria’s experience to that of Norway, which successfully managed its oil resources, and Malaysia, which developed an authentic oil industry through its national oil company, Petronas.
Soremekun quoted Perez Alfonso, Venezuela’s Oil Minister, who warned about the dangers of oil wealth, citing the example of his treasured 1950 Singer car, which was left to rust at the docks and eventually became unusable.
The professor concluded by highlighting the need for Nigeria to overhaul its policies and develop a new approach to managing its oil resources. He praised the Dangote refinery as a game-changer and emphasized the importance of leveraging Nigeria’s revitalized interests with France to explore nuclear energy options.
Other keynote speakers included Professor Edem Eniang, who spoke on the impact of oil industry operations on the Niger Delta environment, and Professor Osita Oshita, who addressed security challenges facing the Nigerian oil industry. The event featured panel discussions and was attended by stakeholders, media representatives, and security agencies.
Two of Nigeria’s largest beverage manufacturers; Nigerian Breweries and Guinness Nigeria, have announced plans to increase the prices of some of their products, citing rising operational and production costs amid the country’s challenging economic environment.
In separate notices sent to distributors, both companies said the price adjustments would affect selected stock-keeping units (SKUs) across their product lines. The move comes as manufacturers grapple with inflation, foreign exchange volatility, rising energy expenses, and increasing logistics costs.
Nigerian Breweries, Nigeria’s largest brewing company, disclosed that its new price structure would take effect on March 20, 2026. In a letter dated March 13 and signed by its zonal business manager (West), John Oloche Ademu, the company, said the review was necessary to cushion the impact of escalating operational and input costs.
The company explained that the current economic landscape has significantly increased the cost of doing business, making the price adjustment unavoidable in order to sustain operations and maintain steady product supply to distributors.
Similarly, Guinness Nigeria informed distributors in a notice dated March 14 that it would also increase prices on selected products, with the new rates expected to take effect from March 27, 2026. The brewer said the decision was driven by prevailing economic conditions that have raised production and operational expenses across the industry.
Both companies noted that distributors who place and fully fund their orders before the effective dates will still be able to purchase products at the existing prices.
Industry analysts say the development reflects growing pressure on manufacturers in Nigeria, where the cost of raw materials, packaging, transportation, energy, and foreign exchange has surged in recent months. The planned adjustments could lead to higher retail prices for popular beer and malt drinks in the coming weeks as distributors and retailers adjust to the new pricing structure.
Nigerian Breweries produces widely consumed brands such as Star Lager, Gulder, Legend Extra Stout, Heineken, and Maltina, while Guinness Nigeria is known for products including Guinness Stout, Malta Guinness, and Orijin.
The price hike is expected to add further pressure on consumers already facing high inflation and rising living costs across the country.
The Central Bank of Nigeria (CBN) has directed all banks in the country to restrict banking services to large borrowers with non-performing loans, in a move aimed at strengthening financial stability and reducing risks in the banking sector.
In a circular dated March 12, 2026, and addressed to all financial institutions, the apex bank said the directive targets “non-performing large ticket obligors” whose debt exposures could pose a systemic risk to the financial system.
Under the new directive, banks are required to deny additional credit facilities to any large borrower whose loan has been classified as non-performing and recorded in the Credit Risk Management System (CRMS) or any licensed private credit bureau.
The restriction covers all forms of credit, including loans and other direct lending facilities. Banks have also been instructed not to extend contingent banking services such as letters of credit, performance bonds, banker’s confirmations, or advance payment guarantees to such borrowers.
The CBN further directed banks to strengthen collateral coverage by obtaining additional realizable collateral from affected borrowers in order to secure existing exposures.
According to the apex bank, large ticket obligors are borrowers whose total exposure meets the threshold outlined in the Prudential Guidelines for Deposit Money Banks in Nigeria or whose combined borrowings across banks exceed the Single Obligor Limit (SOL), thereby posing potential risks to banks’ Capital Adequacy Ratio (CAR).
The directive forms part of the regulator’s efforts to protect depositors, enforce prudential compliance, and maintain stability within Nigeria’s banking system.
Vietnam recorded the world’s largest trade surplus with the United States in January 2026, surpassing both Mexico and China, according to the newly released U.S. trade data.
The figures show that Vietnam’s exports to the United States surged sharply at the start of the year, helping the Southeast Asian country top the list of America’s largest trade surplus partners.
Data from U.S. authorities indicate that the trade surplus reached about $19 billion in January, driven largely by a 53% increase in Vietnamese exports to the U.S., which exceeded $20 billion during the period.
The development reflects a continuing shift in global trade patterns, as American imports from China declined while more goods are sourced from Vietnam and other Asian manufacturing hubs.
Despite the strong trade figures, negotiations between Washington and Hanoi over a bilateral trade agreement remain unresolved. Officials say disagreements over tariff rates and the widening trade imbalance have delayed progress on a deal.
Analysts also note that Vietnam’s trade surplus with the United States has been expanding steadily in recent years, partly because higher tariffs on Chinese goods encouraged companies to shift manufacturing and exports to Vietnam.