NNPCL, Dangote refinery begin talks on Naira-for-crude contract

The Nigerian National Petroleum Company Limited has initiated fresh negotiations with the Dangote Petroleum Refinery over the renewal of the naira-for-crude agreement, as talks are underway in anticipation of the expiration of the initial deal, which ends on March 31, 2025.

The NNPCL disclosed this in a statement issued on Monday in response to claims that the government-owned oil company had suspended the naira-for-crude deal until 2030, as it has forward-sold all its crude oil.

This came as fresh findings by The PUNCH indicated that crude oil worth about N486.31bn was received by the $20bn Lekki-based refinery under the deal between October and December 2024.

Recall that on October 1, 2024, the government commenced the sales of crude oil in naira to local refineries to improve supply, save the country millions of dollars in petroleum product imports, and ultimately reduce the pump prices of refined products.

The NNPCL Chief Corporate Communications Officer, Olufemi Soneye, in the statement on Monday, explained that the initial deal was for six months, confirming The PUNCH exclusive report last year, adding that discussions for the renewal of the agreement are currently ongoing, with the aim of establishing a new contract.

He also stated that under the deal initiated in October 2024, the 650,000-capacity refinery has received 48 million barrels to refine for petroleum products, while a total of 84 million barrels has been supplied to the refinery since it commenced operations in 2023.

The spokesperson also clarified that the deal was subject to availability.

The statement read, “NNPC Limited has noted recent reports circulating on social media regarding the alleged unilateral termination of the crude oil sales agreement in naira between NNPC and Dangote Refinery.

“To clarify, the contract for the sale of crude oil in naira was structured as a six-month agreement, subject to availability, and expires at the end of March 2025. Discussions are currently ongoing towards emplacing a new contract.

“Under this arrangement, NNPC has made over 48 million barrels of crude oil available to Dangote Refinery since October 2024. In aggregate, NNPC has made over 84 million barrels of crude oil available to the refinery since its commencement of operations in 2023.”

The national oil firm further reaffirmed its commitment to supplying crude oil for local refining based on mutually agreed terms and conditions. “

Naira-for-crude policy intact

Similarly, the Chairman of the Technical Sub-Committee on the naira-for-crude deal, Zacch Adedeji, reaffirmed the government’s stance, emphasising that the termination of the contract was never a consideration.

He said there is substantial evidence supporting the policy as the correct approach and affirmed that it will continue to contribute positively to the nation’s economy.

“The policy framework enabling the sale of crude oil in naira for domestic refining remains in force. The initiative was designed to ensure supply stability and optimize the utilisation of local refining capacity. There has been no decision at the policy level to discontinue this approach, nor is it being considered. After implementing the policy for some months, evidence abounds that it is the right way to go, and it will continue to help the economy.

“The framework for domestic crude transactions is designed to promote a competitive and efficient pricing environment,” the Federal Inland Revenue Chairman said in an e-signed statement.

He also revealed that local refineries have not been excluded from domestic crude supply and the Nigerian Upstream Petroleum Regulatory Commission is actively ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act.

“The engagement process for crude oil supply to domestic refineries therefore remains in place by structured agreements, balancing factors such as availability, demand, and market conditions. There is no exclusion of local refineries from access to domestic crude oil. The Nigerian Upstream Petroleum Regulatory Commission is actively ensuring compliance with the Domestic Crude Oil Obligations provisions of the Petroleum Industry Act.

“We remain committed to ensuring the efficient execution of this initiative in line with its core objectives – enhancing local refining, reducing foreign exchange exposure, and stabilising the domestic fuel supply,” he concluded.

Commenting on the ongoing contract renewal discussions, the Publicity Secretary of the Crude Oil Refinery-Owners Association of Nigeria, Eche Idoko, stated that the renewal was part of the original plan, emphasising that there have been no changes to the initial discussions.

However, he urged the government to honour its commitment to meeting the 27,000 barrels per day demand from modular refineries, stressing the importance of fulfilling this promise for the continued success of the industry.

Speaking in an interview, the publicity secretary said, “What the Federal Government said to us during our meetings last year was that they were going to start the pilot phase with Dangote, and when it ends, the second phase, which will start after March, will cover other refineries with a capacity of 27,000 barrels. The reason they started with Dangote was because they needed a refinery that could produce petrol, and only Dangote could do that.”

“But we also know that diesel is consumed by trucks that carry foodstuffs, which ultimately drives up the price of products, so modular refineries are important, and we really hope that they would fulfil that promise, as discussed, to include other refineries.”

He also highlighted the gains of the agreement, stressing that “We have seen a reduction in the price of products on one hand, and the naira has performed well against the dollar. Given this success, we are supposed to just enter the second phase and not say the government is renegotiating with Dangote. It is supposed to be with all the refineries.”

Meanwhile, an analysis of crude oil liftings obtained from the NNPCL monthly presentations at the monthly Federal Account Allocation Committee meetings between October 2024 and the last FAAC meeting held in February 2025 showed that the Dangote refinery received crude supply worth N486.31bn.

The national oil firm noted that the transactions were valued at $373.76m, and payments were made at an Afrexim Bank-advised exchange rate payable in naira, amounting to N486.31bn.

However, as of last month, the documents indicated that a total of $126.99m at an equivalent of N199.96bn was listed as obligations due for remittance and yet to be paid.

It further stated that all products were supplied to the refinery under a credit facility, with a payment due date set for 45 days from the date of barrel liftings.

It was observed that the crude oil figures were disclosed post facto, with the December data shared during the company’s last meeting in February 2025. The figures reported in January and February are expected to be presented to the FAAC committee during its meeting in March and April 2025.

The report revealed that on October 14, 2024, the $20 billion Lekki-based refinery received its highest allocation of crude oil, totalling 598,125 barrels. In contrast, on October 30, 2024, the refinery’s lowest allocation was 5,000 barrels. Additionally, the government only fulfilled its daily oil requirement on four occasions during this period.

A detailed breakdown of each transaction revealed that the first shipment, which was loaded onto the Sienna vessel carrying 100,000 barrels of crude oil, was received on October 14. This shipment was sold at a unit price of $78.56 per barrel, corresponding to invoice number PSC10.24.001. The total value of the transaction amounted to $7,856,870, which, when converted at N1,628, equals approximately N12.797bn.

The second transaction with invoice number PSC 10.24.002 was initiated on the same day with 598,125 barrels supplied. It was sold at a unit price of $78.56 per barrel with a dollar value of $46,993,903 and the equivalent of N76.54bn using an exchange rate of N1,635 per dollar.

The next allocation with invoice number PSC.10.24.009 was initiated on October 23, with 597,917 barrels delivered via vessel Sonangol Kalandula to the refinery. It was estimated at a unit price of $78.67 per barrel and a total value of $47,043,332 and naira equivalent of N77.64bn. An exchange rate of N1,650 was used for this transaction.

Similarly, a supply of 350,000 barrels was delivered on the same date at the same unit price and exchange rate. This transaction with invoice number PSC 10.24.008 was valued at $27,537,545 and a naira equivalent of N45.45bn.

The next day, October 24, another supply of 250,000 barrels was submitted at a unit price of $75.37 per barrel at a total cost of $18,844,675 and N30.814bn naira equivalent. An exchange rate of N1,635 was utilised for this transaction with invoice number PSC.10.24.018.

Also, the next allocation with invoice number PSC.10.24.017 was initiated on October 24, with 202,716 barrels delivered via vessel Constantios to the refinery. It was estimated at a unit price of $75.37 per barrel and a total value of $15,280,468 and naira equivalent of N24.98bn. An exchange rate of N1,635 was used for this transaction.

On October 30, the lowest supply of 5,000 barrels was submitted at a unit price of $78.18 per barrel at a total cost of $390,943 and N600.03m naira equivalent. An exchange rate of N1,534 was utilised for this transaction with invoice number PSC.10.24.013.

A summation showed that 2,103,758 barrels were supplied in the month of October. However, there was a significant decline in the supply during November, with only two transactions approved throughout the entire month.

Both transactions occurred on November 4, 2024, with a combined supply of 798,374 barrels of crude oil. The unit price for the oil was $75.82 per barrel, bringing the total value of the transactions to $60,534,073. This amount was equivalent to N100.87 billion, using an exchange rate of N1,666 to the dollar. The invoice number for these transactions was PSC/EXP/OML/146/09-24/RO-19.

In December. On the second day of the month, four vessels conveying 799,737 barrels of crude oil berthed at the refinery terminal. It was sold at a unit price of $74.87 per barrel, a total dollar value of $59,879,328, and a naira equivalent of N93.59bn. An exchange rate of N1,562 was used for these transactions and was paid in naira.

On December 11, 233,401 barrels of crude oil were supplied at a unit price of $76.21 per barrel at a total cost of $17,787,886 and N23.03bn naira equivalent. An exchange rate of N1,294 was utilised for this transaction with invoice number PSC.12.24.001. A remark on this transaction stated that Dangote paid based on the received volume of 193,320 barrels as against the invoice volume of 233,401.

Also, a pending crude oil supply of 956,061 barrels at a unit price of $74.9 and a total value of $71.61 was postponed to January.

The documents, however, didn’t reveal the supply of petroleum products received from the refinery under the deal.

NCDMB Commends Heritage Energy, Pledges Support for OML 30 Projects

The leadership of Heritage Energy & Oil Services Limited and its joint venture partners recently visited the Executive Secretary of Nigerian Content Development and Monitoring Board (NCDMB), Engr. Felix Omatsola Ogbe, and received assurances of support for their operations on oil mining lease (OML) 30.

The meeting held at NCDMB’s Lagos liaison office, and the oil company visited with their JV Partners, Shoreline Natural Resources, and NNPC Exploration and Production Limited (NEPL). Heritage is the operator of OML 30 on behalf of Shoreline/NEPCL JV, and the discussions focused on the short, medium, and long term plans around their asset.

The group thanked NCDMB for supporting their operations and solicited for accelerated approval of documents relevant to their tenders for drilling and other projects. The documents include: Technical Invitations to Tender, Technical and Commercial Evaluation Template, Nigeria Content Compliance Certificates, Letter for approval of Human Capacity Development Trainings and other support to enable the company comply fully with the provisions of the Nigerian Oil and Gas Industry Content Development (NOGICD) Act.

The group’s plan is to grow production from the current 45,000 barrels per day (bpd) to 100,000 barrels per day (bpd) by 2030. This growth projection would require substantial investment, including drilling several new wells, the officials said.

The officials confirmed that their consortium has kicked off a four-rig campaign to boost production, focusing on underdeveloped fields, gas development, which would support Nigeria’s gas master plan, and exploration. The company officials added that

“we anticipate a significant production increase in oil production over the next five years from these initiatives. It’s not just about increasing output; it’s about local economic development, job creation, and sustainable resource utilization. We are also investing in produced water disposal to enhance operational efficiency and optimize production. Our strategic investment also includes flare gas gathering/gas development and monetization, unlocking a new value stream for the Asset. Additionally, we are revamping and investing in the Trans Forcados Pipeline (“TFP”) to support the expected increased production from OML 30 and other assets that leverage the TFP for crude evacuation.

In his remarks, the Executive Secretary commended Heritage and the entire OML 30 team for the strides they have achieved with their operations. He assured that NCDMB would support their investment plans, which would lead to increased oil and gas production, job creation, and economic enhancement in line with President Bola Tinubu’s renewed hope agenda for the country.

The NCDMB helmsman highlighted several initiatives the agency was championing, as well as its partnership with international and indigenous oil producing companies to accelerate oil and gas projects and crude oil production, in line with Mr. President’s charge to the oil industry.

Senior officials of the NCDMB team at the meeting included the Director Planning, Research and Statistics, Mr. Isaac Yalah, Director Project Certification & Authorisation, Engr. Abayomi Bamidele, General Manager Corporate Communication and Zonal Coordination, Mr. Esueme Dan Kikile, Esq and General Manager, Strategy and Transformation Projects, Ms. Amanda Yekorogha.

OML 30 lies onshore within the Niger Delta, in one of the most proliﬁc oil and gas provinces in the world. The licence covers 1,097 square kilometres and includes eight producing ﬁelds such as Olomoro, Oleh, Uweh, Uzere, Ewvreni, Eremu, Oroni, Kokori and several other partially appraised fields with oil and gas contained in numerous stacked reservoirs.

Corporate Communications

March 8, 2025

Musk says X hit by major cyber attack

Elon Musk said X was hit by a major cyberattack on Monday as outages plagued users of the platform once known as Twitter.

“There was (still is) a massive cyberattack against X,” Musk said in a post on the platform.

Musk blamed a cyberattack, providing no evidence, for crashing the site last year when an interview with Donald Trump was to be streamed.

In his post Monday, Musk included an X post from a DogeDesigner account that some on Reddit speculated could be a puppet of the tycoon himself.

The post noted protests against the Department of Government Efficiency (DOGE) that Trump entrusted to Musk, along with Tesla shops being vandalized, suggesting a cyberattack could signal another burst of animosity towards Musk.

Musk is chief or Tesla, his electric car company.

“It would take a lot of (money) to do an attack of this magnitude,” read a post in the exchange by the account of Jammies

Musk also maintained such an attack would take tremendous resources, speculating it was the work of a country or large coordinated group.

Outages on the X social media platform left tens of thousands of users unable to access the site, according to monitors.

Reports of problems with X started in the early hours of Monday, with users in Asia, Europe, and North America saying they could not access the platform, according to the Downdetector tracking site.

At the peak, more than 40,000 people reported outages, the site said.

The bulk of the reports were from people trying to use X on smartphones, but people on web browsers also reported the service down.

“Twitter keeps breaking?” asked a post by @Lalaslovely in the Downdetector chat section.

After Musk bought Twitter for $44 billion in late 2022, the majority of employees left or were fired, raising concerns about whether staffing was in place to keep the platform safe and stable

Naira appreciates by N63 against Dollar in January to seven-month high

Nigeria’s exchange rate appreciated significantly in January 2025, gaining N63.72 against the dollar to close at N1,474.78 per dollar on January 31 at the Nigerian Foreign Exchange Market.

According to data from the FMDQ Securities Exchange Limited and the Central Bank of Nigeria, this increase of 4.14 per cent pushes the local currency to the highest level it has reached in seven months, with the last time the currency traded at a similar rate being June 11, 2024, when it stood at N1,473.88/$ in the official market.

The sharp increase has been attributed to policies implemented by the CBN, which have influenced market dynamics and contributed to the currency’s strengthening.

Authorised currency dealers quoted the dollar as high as N1,495.01/$ and as low as N1,447.50/$ at the NFEM.

The naira opened the year at N1,538.50/$ on January 2, 2025, and steadily gained value throughout the month.

By January 3, it had dipped slightly to N1,535.00 before fluctuating within a range that saw it hit N1,560/$ on January 16, marking its highest point for the month.

However, the currency embarked on a more sustained appreciation from the third week of January, closing at N1,531/$ on January 24 and further strengthening to N1,520/$ on January 28.

It continued its climb, settling at N1,506/$ on January 29 and N1,493/$ on January 30 before reaching N1,474.78/$ on the last trading day of the month of January.

The naira also appreciated against the US dollar in the parallel market on Friday, closing at N1,610/$, compared to N1,630/$ recorded on Thursday, representing a N20 increase within a day.

This latest movement reflects the impact of recent monetary and foreign exchange measures introduced by the CBN to stabilise the currency and improve market confidence.

The introduction of the Electronic Foreign Exchange Matching System in December 2024 has played a significant role in this development.

The platform, which operates through Bloomberg’s BMatch system, allows authorised dealers to place anonymous orders into a central limit order book, ensuring transparency and efficient price discovery in the foreign exchange market.

This system has helped reduce market distortions and provided the CBN with enhanced oversight capabilities, making it easier to manage fluctuations in the exchange rate.

Another crucial factor influencing the naira’s recent appreciation is the introduction of the Nigeria Foreign Exchange Code, launched on January 28, 2025.

“The FX Code marks a new era of compliance and accountability. It is not just a set of recommendations; this is an enforceable framework. Under CBN Act 2007 and BOFIA Act 2020, violations will be met with penalties and administrative actions,” CBN Governor Olayemi Cardoso said during the launch of the FX Code.

The FX Code establishes principles for ethical conduct, governance, execution, information sharing, risk management, and settlement processes among market participants.

By aligning Nigeria’s foreign exchange operations with global best practices, the initiative has strengthened investor confidence and contributed to the recent improvements in the currency’s performance.

At the end of 2024, the naira stood at N1,535.00 per dollar on December 31, reflecting the challenges that had persisted in the forex market.

However, the policy interventions introduced by the apex bank in early 2025 have helped stabilise the market, allowing the currency to make significant gains over the past month.

The improved transparency in the foreign exchange system has reduced speculative activities, ensuring that exchange rates better reflect actual market conditions.

However, while the local currency is improving, Nigeria’s foreign exchange reserves experienced a significant decline in January 2025, dropping by $1.11bn over the course of the month.

According to data from the CBN, the country’s reserves stood at $40.88bn on January 2, but by January 30, they had fallen to $39.77bn.

This represents a 2.72 per cent decrease within the one month.

The decline in reserves follows ongoing interventions by the CBN in the foreign exchange market, as well as external debt servicing obligations and capital outflows.

While the naira appreciated significantly within the same month, the reduction in reserves seems to suggest that the CBN may have deployed part of its FX stockpile to stabilise the local currency and manage liquidity in the official market.

At the start of January, reserves remained above the $40bn mark, recording $40.88bn on January 2 and fluctuating within that range for the first half of the month.

By January 10, reserves stood at $40.75bn, and they peaked at $40.96bn on January 6 before beginning a gradual decline.

By mid-month, reserves had dropped to $40.42bn on January 15, further sliding to $40.05bn by January 22.

The steepest declines occurred in the last week of January when reserves fell below $40bn for the first time in months, hitting $39.99bn on January 23 and $39.77bn by January 30.

With the FX reserves at a three-month low, the consistent drawdown indicates heightened FX demand and possible interventions by the monetary authorities to maintain exchange rate stability.

The current decline is similar to the significant drop recorded in April 2024, when reserves plunged by $2.16bn within 29 days.

Design Week Lagos Joins Forces with Ecobank and Ministry of Arts, Culture, Tourism and Creative Economy to Launch “2025 Design and Innovation Exhibition”

Design Week Lagos is partnering with Ecobank Nigeria and the Ministry of Arts, Culture, Tourism, and Creative Economy to present Nigeria’s inaugural Design and Innovation Exhibition 2025.

Hannatu Musa Musawa, Minister of Art, Culture, Tourism, and the Creative Economy, stated: “This exhibition offers a distinctive avenue for our nation’s economic advancement. By harnessing the synergy between Nigerian creativity and the manufacturing sector, we can modernize and innovate our products, promote the production of Nigerian creativity and furniture, and strengthen our economic connections.”

Titi Ogufere, Founder of Design Week Lagos and the Design, Innovation, and Inventors Hub of Nigeria, shared her vision for the event: “The Design and Innovation Exhibition 2025 is more than a celebration of design; it represents a bold step toward positioning Nigeria at the forefront of the Fourth Industrial Revolution. By fostering collaborations between designers and manufacturers, we aim to develop innovative products that not only serve local markets but also establish Nigeria as a global leader in design and manufacturing exports. This initiative underscores our commitment to building a sustainable industrial ecosystem that celebrates local talent and drives economic growth across Africa.”

” At a pivotal moment in Nigeria’s creative economy, the Design and Innovation Exhibition 2025 will showcase the finest in furniture, product, and industrial design. This year’s exhibition will focus on the theme ‘Building a Made-in-Nigeria Brand, ’celebrating the creativity, innovation, and craftsmanship of Nigerian designers and manufacturers while emphasizing industrialization and export potential,” Ogufere said.

Omoboye Odu, Head of SME, Partnerships, and Collaboration at Ecobank, said partnering for the exhibition is yet another demonstration of Ecobank’s commitment to driving innovation, collaboration, and capacity building, which is the backbone of the nation’s economy.

“Ecobank is the solution for African banking, and we are committed to giving our customers the platform to network, collaborate, and partner to promote innovation and creativity. We are proud to be part of the process to spotlight homegrown innovations and sustainable practices across various sectors.” Odu said.

The event will feature the Manufacturer and Designer’s Pavilion, spotlighting collaborations between manufacturers and designers, as well as the Designer’s Pavilion, where 50 individual designers will present new concepts across a variety of design disciplines, including furniture, toys, automotive, and industrial design, reflecting the diversity of Nigeria’s creative landscape.

Interactive spaces will also be a key part of the exhibition, including:

The Maker’s Room, where visitors can witness the design process in action.
The Material Lab, showcasing sustainable material innovations.
The Umbrella Crate Stall, offering a fresh perspective on informal markets.
The Design Den, an exciting platform for designers to pitch ideas to investors, promoting collaboration and industry growth.

A standout feature of the event will be the Titi Lai Lai Showcase, a curated concept store that will present exclusive pieces from renowned Nigerian designers and artists such as Victor Ekpuk, Banke Kuku, Mama Nike, and the Nike Art Gallery. This collaboration will highlight the fusion of art and design, celebrating the use of local materials and the rich cultural heritage of Nigeria.

Last year’s exhibition by Design Week Lagos, garnered significant attention with groundbreaking collaborations, including AFP by Julius Berger teaming up with Temitope El Shabazz, Woodstyles collaborating with Tosin Oshinowo, TRT Aredo working with Myles Igwebuike, and IO Furniture partnering with Q. These partnerships produced innovative, Made-in-Nigeria designs that pushed the boundaries of local craftsmanship.

Building on that success, the Design and Innovation Exhibition 2025 will expand even further, with 25 new collaborations between designers and manufacturers presenting cutting-edge, original works. This year’s exhibition continues to showcase the seamless blend of creative vision and technical expertise, setting a new standard for design excellence in Nigeria.

ZENITH BANK SECURES REGULATORY APPROVAL FOR N350B RIGHTS ISSUE AND PUBLIC OFFER PROCEEDS

Zenith Bank Plc has raised a total of N350.4 billion through its recently concluded hybrid Rights Issue and Public Offer.

In a statement released to the Nigerian Exchange (NGX) Group on Sunday, January 26, 2025, the Bank announced that it has secured the full regulatory approval of the Central Bank of Nigeria (CBN) and the Securities and Exchange Commission (SEC) in respect of its recently concluded Hybrid Offer, comprising of a Rights Issue of 5,232,748,964 Ordinary Shares of 50k each at N36.00 per share and Public Offer of 2,767,251,036 Ordinary Shares of 50k each at N36.50 per share.

The Public Offer was 160.47% subscribed, with a total of 4,440,587,250 Ordinary Shares allotted based on the terms of the Offer and the CBN’s Capital Verification Exercise. The Rights Issue was also 100.18% subscribed with a total 5,232,748,964 ordinary shares allotted.

Lauding the development, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, said: “The success of our combined Rights Issue and Public Offering is a testament to the strong confidence and trust that our shareholders, investors, and stakeholders have in Zenith Bank’s vision, strategy, and brand. This landmark transaction underscores our commitment to strengthening our capital base, enhancing our competitive edge, and positioning ourselves for sustainable growth and profitability. We deeply acknowledge the invaluable and strong support of our regulators, the Central Bank of Nigeria and the Securities and Exchange Commission, and are grateful for their guidance in ensuring the integrity and efficacy of the exercise. This successful transaction will enable us to continue delivering value to our stakeholders, while also contributing to the growth and development of the economy.”

Proceeds from the Hybrid Offer will be strategically deployed to solidify the Bank’s position as the leading financial institution in Nigeria. Additionally, the funds will support the Bank’s expansion into other markets in Africa and Europe, investment in technology and other Group-wide growth initiatives.

The Offer, which opened on August 1, 2024 and closed on September 23, 2024 and sought to raise N290 billion through a combination of a Rights Issue and Offer for Subscription, was successfully executed largely as a digital Offer, embracing the power of technology to improve access to the equity capital market as it seamlessly leveraged the Nigerian Exchange Limited’s e-Offer platform.

The results of the Hybrid Offer, which garnered substantial interest from domestic and international investors, has positioned the Bank as one of the few banks in Nigeria to meet and even surpass the CBN’s N500 billion minimum capital requirements for Banks with International Authorization well ahead of the March 2026 regulatory deadline. The Bank’s share capital will now rise to N614.65 billion, which is N114.65 billion above the regulatory minimum requirement.

ZENITH BANK REINFORCES COMMITMENT TO STAFF WELLBEING THROUGH PAY RISE AND PROMOTIONS

One of Africa’s leading financial institutions, Zenith Bank has reaffirmed its dedication to employee welfare by announcing the promotion of over 4,000 staff members and implementing salary increases ranging from 20% to 30% across various employee grades.

This bold initiative, under the leadership of Managing Director/CEO Dame Adaora Umeoji, its aimed at boosting staff morale and productivity.

With over 8,000 employees, this significant investment in human capital reflects Zenith Bank’s belief that its workforce is its most valuable asset. The salary adjustments, effective January 1, 2025, aim to reward performance, alleviate financial pressures, and ensure enhanced customer service delivery. Promotions for top management are also expected as part of the bank’s ongoing commitment to excellence and growth.

Dr. Umeoji emphasized the importance of maintaining a motivated workforce, stating that the bank’s dedication to its employees will translate into superior service experiences for customers. She highlighted the organization’s commitment to setting industry benchmarks through innovative solutions and exceptional service delivery.

Zenith Bank’s continued leadership in the Nigerian financial sector is underscored by numerous awards, including Best Bank in Nigeria 2024 by Global Finance and recognition as the Biggest Bank in Nigeria by Tier-1 Capital in 2024 by The Banker. These accolades complement its reputation for innovation, sustainability, and corporate governance.

By prioritizing employee welfare during challenging times, Zenith Bank not only strengthens its internal operations but also sets a standard for other financial institutions in the region, reinforcing its position as a leader in Africa’s banking landscape.

As a major player in Nigeria’s financial landscape, under its managing director/chief executive officer, Adaora Umeoji, the bank has embraced a holistic approach to growth that integrates environmental, social and governance (ESG) principles with its core business objectives.

At the heart of Zenith Bank’s strategy is a focus on buoying economic inclusion, supporting small and medium-sized enterprises (SMEs) and driving technological innovation to enhance customer experiences. The bank’s proactive investments in renewable energy, sports, digital transformation and impactful community initiatives exemplify its dedication to creating long-term value for its stakeholders while addressing global sustainability challenges.

Zenith Bank’s continued success is driven by a combination of strong financial performance and an unwavering commitment to its stakeholders.

Zenith Bank’s growth trajectory is underpinned by a robust expansion strategy. With operations in several countries, including the UK, UAE, China, and most recently, France, the bank continues to expand its geographical footprint.

As usual, the bank’s efforts in 2024 did not unnoticed as the lender clinched several local and international awards in recognition of its outstanding performance.

In 2024, the bank won the Best Bank in Nigeria at the annual Global Finance award in Washington, DC, NY.

The bank also emerged the Biggest Bank in Nigeria by Tier-1 Capital, 2024 by The Banker; Best Commercial Bank, Nigeria 2024 – World Finance; Best Corporate Governance, Nigeria 2024 – World Finance; Most Sustainable Bank, Nigeria 2024 – International Banker; Bank of the Year, 2024 – Business Day; Retail Bank of the Year, 2024 – Business Day; Bank of the Year 2024- The Banker.

It also clinched the Most Responsible Organization in Africa 2024 – SERAS; Best in Gender Equality & Women Empowerment 2024 – SERAS and Best in Transparency & Reporting 2024 – SERAS

How rising costs threaten Nigeria’s telecom sector – by Ismail Olatunji

How rising costs threaten Nigeria’s telecom sector

– by Ismail Olatunji

Rising operating costs have become increasingly overwhelming for most businesses in Nigeria in the past two to three years. Escalating costs of fuel, power, labour, transportation, equipment maintenance and security, coupled with forex fluctuations and availability have especially put pressure on the telecom industry, with significant impact on business growth and sustainability, necessitating a clamour for tariff increase by telecom network operators.

In acknowledgement of the operators’ plight, the Federal Government through the Ministry of Communications, Innovation & Digital Economy, and the Nigerian Communications Commission ( NCC) at a stakeholders’ meeting with Mobile Network Operators (MNOs), few days ago in Abuja, granted the request for new tariffs for telecom services, including call, SMS and data among others. The Minister of Communications, Innovation & Digital Economy, Bosun Tijani, stated that although Government would not approve the 100% new tariff regime proposed by the network operators, price increases in telecom services were inevitable. The new price regime is expected to be announced by the NCC any moment soon.

Fundamentally, the costs of diesel, alternative power, and municipal power supply have skyrocketed, while the forex rate has increased astronomically in the last one-and-half to two years. Most telecom equipment and software applications are dollar-denominated, making the major network operators and more importantly, the infrastructure companies (INFRACOs), including tower companies, data centres and internet bandwidth and international connectivity companies that provide the essential bulk backbone services that power the network for telecom firms or service to the homes and offices, equally bear a significant brunt of these cost pressures.

The operating costs of telecom business are largely denominated in dollars. Firstly, given the huge capital requirement for telecoms operations, funding is sourced from international markets, and that has witnessed more than 300% in inflation in terms of interest and principal repayment cost for these funds due to the depreciation of the naira against the US dollar, rising from approximately N500 to over N1,600 in the past three to four years. Additionally, most of the critical components required for operating and maintaining telecoms networks are sourced off-shore requiring significant FOREX. This presents a complex and difficult mismatch for MNOs and INFRACOs who generate revenue in Naira while their costs are USD denominated.

Available statistics further show that the operational expenses of major Mobile Network Operators have surged by over 300% in the last 18 to 24 months, with energy costs accounting for the largest share of their expenses. The escalating cost drivers in the telecom value chain, including fuel, power, energy, and forex, have left operators with no choice but to seek a tariff hike.

If these challenges are not mitigated as quickly as possible, the crisis will have far-reaching consequences for Quality of Service, job security, and the Nigerian economy as a whole. It’s imperative that the federal government grants the request of telecom operators for tariff increases across service offerings – call, SMS and data.

The challenging operating environment has led exasperated MNOs to cry out and make a case for tariff increases. Chief Executive Officer of MTN Nigeria, Karl Toriola, Managing Director/CEO of Airtel Nigeria, Dinesh Balsingh, and 9mobile CEO, Obafemi Banigbe, have highlighted the dire situation, stating that the telecom industry is struggling not just with profitability concerns but with fundamental sustainability, even as it is arguably supposed to be a key driver of the economy. The case for tariff increases, they clarified, is principally to enable the MNOs improve on the present infrastructure gap in order to bolster Quality of Service and broadband penetration in the country.

The Association of Licensed Telecom Operators of Nigeria (ALTON) and the Association of Telecommunication Companies of Nigeria (ATCON) have equally corroborated the need for tariff increases in order to save the country’s telecom sector from avoidable collapse.

Both the industry regulator the Nigerian Communications Commission (NCC) and the Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, have supposedly acknowledged the industry’s plight, with the minister announcing that tariff increases would be approved, although not at the 100% level requested by operators.

But the fundamental reality is that if tariff increases are not approved, the current challenges faced by telecom network operators and even the INFRACOs will have far-reaching consequences for Quality of Service, job security, national security, the financial sector, and the Nigerian economy as a whole.

Here are a few ways tariff increases will impact telecom business sustainability, service quality, and the overall national economy. The telecom industry’s survival is at stake. Without tariff increases, operators may struggle to maintain quality services, leading to a decline in overall sector performance. Tariff increases will enable operators to invest in infrastructure development, driving growth and improving services.

MNOs also deserve fair compensation for their services, considering the rising costs of operations and the investments they have made and must keep making. As operators struggle to maintain operations and a decent return on investment, they are likely to be forced to cut corners, compromising on network maintenance, upgrades, and expansion. This will inevitably lead to a decline in Quality of Service, resulting in dropped calls, poor internet connectivity, and frustrated customers.

Similarly, for the INFRACOs, the rising costs of diesel, fuel, and energy will make it increasingly difficult for them to maintain uninterrupted services at their sites or their networks. In the same vein, the high cost of providing security at cell sites, securing telecom equipment, and transportation of equipment and vendors to sites for maintenance have implications on uninterrupted services. Power outages, network downtime, and reduced coverage areas will become more frequent, ultimately leaving MNO subscribers to voice, data and value added services disconnected and discontent if there are no latching incentives to alleviate their dire cost challenges.

The telecom sector is a significant employer of labour in Nigeria; the inability of telecom operators to operate profitably can pose a threat to staff retention, thereby putting thousands of jobs at stake with consequential effect on their families, dependents and social order. If operators are unable to absorb the rising costs, they will be forced to downsize, leading to widespread job losses and economic instability.

A decline in the telecom sector will have a negative ripple effect on the Nigerian economy. Reduced investments, decreased economic activity, and a decline in tax revenues will all contribute to a slowdown in economic growth.

The way forward is for the Federal Government to grant the request for tariff increases to the MNOs. To ensure that the impact of the tariff review is sustainable, Government should equally give consideration to the needs of INFRACOs, who provide back-end support for the delivery of communication services and are exposed to socio-economic impact of the escalating cost of doing business over the past few years. In addition to approving tariff adjustments to reflect the rising costs of operations for telecom operators in the country, the government should also provide incentives for INFRACOs in order for them to continue to operate and invest in infrastructure and network upgrades.

Ultimately, the sustainability and growth of the telecom sector are crucial to Nigeria’s economic development. By granting the request for tariff increases, the Federal Government can ensure the sector’s long-term viability and promote a digital economy that benefits all Nigerians.

Olatunji is a Business Analyst, based in Lagos, Nigeria.

ZENITH BANK WINS COVETED BANK OF THE YEAR AWARD IN THE BANKER AWARDS 2024

Zenith Bank Plc has emerged as ‘Bank of the Year, Nigeria’ in The Banker’s Bank of the Year Awards 2024. The award, which was announced by The Banker Magazine, Financial Times Group, United Kingdom, during the awards ceremony held in London on December 4, 2024, is in recognition of the bank’s strong management, sound business model and strategy, and approach to sustainability and ESG banking practices.

The Banker’s ‘Bank of the Year’ accolade is among the most coveted and widely regarded award in the banking industry. Often contested by the world’s leading financial institutions, the winners span across Africa, Asia-Pacific, Central & Eastern Europe, Latin America, the Middle East, North America and Western Europe.

Commenting on the award, the Group Managing Director/Chief Executive of Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON, said “We are delighted and honored to have been recognized as the Bank of the Year, Nigeria in The Banker’s Bank of the Year Awards 2024. This award is a testament to the unwavering trust and loyalty of our esteemed customers, the unparalleled leadership and guidance of the Board and Management as well as the hard work and dedication of our staff. It also reflects our bank’s steadfast commitment to delivering excellent services to our customers and contributing to the growth and development of the Nigerian economy. We will continue to invest in innovative technologies, expand our range of products and services, and maintain our commitment to exceptional customer service in order to sustain our position as Nigeria’s Number One Bank.” She lauded the Founder and Chairman of Zenith Bank Plc, Jim Ovia, CFR, for his visionary role in laying the foundation for a reputable, dominant and globally recognised financial institution known for innovation, superior performance, and the creation of premium value for all stakeholders.

In November 2024, Zenith Bank commissioned its Paris Branch following the granting of the final approval by France’s banking regulator, the Autorité de Contrôle Prudentiel et de Résolution (ACPR). This is part of the bank’s global expansion strategy, and its commitment to serving clients wherever their businesses are around the world.

Zenith Bank has continued to earn numerous awards, with this latest accolade coming on the heels of several recognitions. These include being recognised as the Number One Bank in Nigeria by Tier-1 Capital for the fifteenth consecutive year in the 2024 Top 1000 World Banks Ranking, published by The Banker Magazine. The Bank was also awarded the Bank of the Year (Nigeria) in The Banker’s Bank of the Year Awards for 2020 and 2022; and Most Sustainable Bank, Nigeria in the International Banker 2023 and 2024 Banking Awards.

Further recognitions include Best Bank in Nigeria for four years from 2020 to 2024 in the Global Finance World’s Best Banks Awards and Best Commercial Bank, Nigeria for four consecutive years from 2021 to 2024 in the World Finance Banking Awards. Additionally, Zenith Bank has been acknowledged as the Best Corporate Governance Bank, Nigeria, in the World Finance Corporate Governance Awards for 2022, 2023 and 2024 and ‘Best in Corporate Governance’ Financial Services’ Africa for four consecutive years from 2020 to 2023 by the Ethical Boardroom.

The Bank’s commitment to excellence saw it being named the Most Valuable Banking Brand in Nigeria in the Banker Magazine Top 500 Banking Brands for 2020 and 2021, and Retail Bank of the Year for three consecutive years from 2020 to 2022 as well as Bank of the Year, 2023 at the BusinessDay Banks and Other Financial Institutions (BAFI) Awards. The Bank also received the accolades of Best Commercial Bank, Nigeria and Best Innovation in Retail Banking, Nigeria, in the International Banker 2022 Banking Awards. Zenith Bank was named Bank of the Decade (People’s Choice) at the ThisDay Awards 2020, Bank of the Year 2021 by Champion Newspaper, Bank of the Year 2022 by New Telegraph Newspaper, Best in MSME Trade Finance, 2023 by Nairametrics and Most Responsible Organisation in Africa 2021 by SERAS Awards.

Zenith Tech Fair 4.0 Concludes with Hackathon Winners Awarded ₦77.5M in Cash Prizes

L-R: Founder/Director, Nistad Limited, Ada Jabaru; Director-General/CEO, NIMC, Engr. Bisoye Coker-Odusote; Special Adviser to the President on Economic Matters, Dr. Tope Fasua; Partner, Africa, AI & Data Leader, Deloitte, Jania Okwechime; Founder & Chairman, Zenith Bank Plc, Jim Ovia, CFR; Group Managing Director/ Chief Executive, Zenith Bank Plc, Dame (Dr.) Adaora Umeoji, OON; Global Expert on AI, Danilo McGarry; Strategy & Digital Implementation Specialist, Robin Speculand; and the Honourable Commissioner for Science, Innovation & Technology, Lagos State, Mr. Olatunbosun Alake during the Zenith Tech Fair 4.0 held at Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos, yesterday.

The Fourth Edition of the Zenith Bank organized Zenith Tech Fair, themed “Future Forward 4.0: Embedded Finance, Cybersecurity & Growth Imperatives – The Impact of AI,” concluded on Thursday, November 21, 2024, at the Eko Convention Centre, Eko Hotels & Suites, Victoria Island, Lagos. The event culminated in a highly competitive hackathon, where 10 finalists emerged from over 1,700 contestants to share a total prize pool of ₦77.5 million.

Hackathon Highlights and Winners

Grand Prize Winner: JumpnPass, a self-checkout technology transforming Africa’s retail sector, claimed the top prize of ₦25 million. In addition, they earned a six-week mentorship and incubation program running from December 2024 to February 2025.

First Runner-Up: CreditChek, leveraging AI and open banking for income and credit history verification, secured ₦20 million alongside a mentorship program.

Second Runner-Up: Salad Africa, which integrates credit products for digital platforms, won ₦15 million and mentorship support.

Other Finalists: Regxta, CashAfrica, Middleman, Messenger, Pocketfood, Famasi Africa, and Kitovu each received ₦2.5 million.

Zenith Bank’s Commitment to Innovation

In her welcome address, Dame (Dr.) Adaora Umeoji, OON, Group Managing Director/CEO of Zenith Bank Plc, praised Founder and Chairman Dr. Jim Ovia, CFR, for his vision in establishing the Zenith Tech Fair. She emphasized the importance of nurturing young innovators, stating,

“This initiative aims to produce the likes of Bill Gates, Mark Zuckerberg, and Steve Jobs. With 70% of Nigeria’s population being youth, this economic asset must be harnessed effectively.”

Dr. Umeoji highlighted innovation as a critical driver for sustaining institutions, stressing that companies failing to innovate risk obsolescence.

Lagos State Governor Advocates Global Business Outlook

His Excellency, Mr. Babajide Sanwo-Olu, Governor of Lagos State, underscored the importance of global competitiveness, stating, “We must enhance our products and services to serve not just local but global markets. Platforms like Zenith Tech Fair reassure us of the government’s readiness to support innovative ideas.”

Event Features and Presentations

The fair launched Zenith Bank’s EazyByZenith, a digital wallet aimed at driving financial inclusion. It also showcased cutting-edge advancements in Artificial Intelligence, Cybersecurity, Cloud Computing, and Financial Intelligence.

Keynote Speaker: Robin Speculand, a global authority on digital strategy, delivered a keynote address titled “Banking Transformation in a Digital World.”

Panel Discussions: Led by Wole Odeyele from Microsoft Inc., the panel featured top industry experts such as Funke Opeke, Dr. Auwal Adam Sa’ad, and Engr. Bisoye Coker-Odusote.

Zenith Bank Startup Pitch Competition

The Zenith Bank startup pitch competition fosters innovation across sectors like Embedded Finance, HealthTech, Agritech, and Fintech. The program provides Nigerian startups a platform to showcase groundbreaking ideas and access resources to scale their businesses.

The Zenith Tech Fair 4.0 was hailed as a resounding success, setting the stage for an even bigger Fifth Edition in 2025.