Business

Concerns over new price of cooking gas

Published

4 days ago

June 8, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigeria’s economic recovery efforts are facing renewed challenges as rising debt servicing obligations, persistent insecurity, governance concerns, and soaring cooking gas prices continue to place pressure on both government finances and household budgets.

While recent economic reforms have attracted investor interest and improved certain macroeconomic indicators, analysts warn that structural challenges remain significant and could undermine the country’s long-term growth prospects if not adequately addressed.

One of the most pressing concerns is the growing burden of debt servicing, which continues to consume a substantial portion of government revenues. Despite efforts by the Federal Government to improve revenue generation and fiscal discipline, debt repayment obligations have remained a major constraint on public spending.

Economic experts note that the high cost of servicing domestic and external debts leaves limited fiscal space for critical investments in infrastructure, healthcare, education, and social welfare programmes.

“The challenge is not necessarily the size of the debt alone, but the proportion of government revenue being devoted to servicing it,” said an Abuja-based economist. “When a significant share of earnings goes into debt repayment, fewer resources are available for developmental projects that can stimulate economic growth and job creation.”

The debt burden comes at a time when Nigeria is seeking to accelerate economic expansion, diversify exports, and attract greater foreign investment. Analysts argue that sustaining these objectives will require stronger revenue mobilisation efforts and prudent borrowing practices.

Beyond fiscal concerns, investors continue to cite insecurity as a major obstacle to economic development. Incidents of banditry, kidnapping, oil theft, communal conflicts, and attacks on farming communities have disrupted economic activities in several parts of the country.

The agricultural sector has been particularly affected, with insecurity limiting access to farmlands and reducing food production in some regions. The situation has contributed to food inflation and increased pressure on household incomes.

Business leaders have also expressed concerns that security challenges raise operating costs for companies, discourage investment, and hinder the movement of goods and services across the country.

Governance and corruption concerns remain another key issue highlighted by economic observers. While successive administrations have pledged to improve transparency and accountability, stakeholders argue that stronger institutions and more effective implementation of anti-corruption measures are needed to improve investor confidence and ensure efficient use of public resources.

According to analysts, addressing governance challenges could unlock significant economic potential by improving public service delivery, reducing waste, and encouraging greater domestic and foreign investment.

Meanwhile, consumers are grappling with a sharp rise in the cost of Liquefied Petroleum Gas (LPG), commonly known as cooking gas, which has become increasingly expensive across many parts of the country.

Market surveys indicate that cooking gas prices have climbed to as high as ₦2,400 per kilogram in some locations, forcing many households to cut consumption or seek alternative cooking methods. The increase has been attributed to a combination of supply chain constraints, foreign exchange pressures, transportation costs, and fluctuations in global energy markets.

The rising cost of cooking gas has sparked concerns among energy experts and consumer groups, who fear that more households may revert to firewood and charcoal, potentially reversing gains made in the adoption of cleaner cooking fuels.

For many families already struggling with high food prices, transportation costs, and electricity challenges, the increase in cooking gas prices represents another blow to household finances.

Energy analysts have called for measures to strengthen domestic LPG production and distribution networks to reduce dependence on imports and improve affordability. They argue that Nigeria’s vast natural gas reserves should position the country as a leading supplier of affordable cooking gas to its citizens.

Despite these challenges, economic experts remain cautiously optimistic about Nigeria’s long-term prospects. They point to ongoing reforms, increasing private sector investments, improvements in the oil and gas sector, and growing opportunities in technology and manufacturing as positive indicators.

However, they stress that sustained economic growth will depend largely on the government’s ability to reduce debt pressures, improve security, strengthen governance, and ease the cost-of-living burden facing millions of Nigerians.

As policymakers continue to pursue economic reforms, many stakeholders believe that addressing these structural challenges will be crucial to ensuring that the benefits of growth translate into improved living standards and greater economic stability for businesses and households alike.

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Business

Poverty skyrocketed under APC within 6 years- Global body

Published

2 days ago

June 10, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Nigeria’s economic reforms have begun to strengthen macroeconomic stability, but rising poverty and food insecurity continue to weigh heavily on millions of citizens, the International Monetary Fund has said.

In its latest assessment of Nigeria’s economy released on Tuesday, the IMF acknowledged that reforms introduced by President Bola Tinubu’s administration over the past three years had improved key economic indicators and enhanced the country’s resilience.

“Strong reforms over the past three years have yielded improved macroeconomic outcomes and built resilience,” the IMF said in a statement issued after its annual review of Nigeria’s economy.

The Fund, however, cautioned that the benefits of the reforms had yet to translate into improved living conditions for a significant portion of the population.

“Still, conditions for many Nigerians remain difficult,” it added.

Since assuming office, President Tinubu has implemented a series of major economic reforms, including the removal of the long-standing fuel subsidy, the liberalisation of the foreign exchange market, and changes to the country’s tax framework. Economists had long advocated for such measures, describing them as necessary to address structural imbalances in the economy.

Despite these efforts, the IMF reported that poverty levels have continued to rise, with about 63 per cent of Nigerians estimated to be living below the poverty line by the end of 2025.

The organisation also disclosed that more than 27 million Nigerians experienced food insecurity during the same period.

The IMF’s findings align with earlier reports by the World Bank, which stated that approximately 61 per cent of Nigerians were living in poverty, compared to 40 per cent in 2019. According to the World Bank, about three-quarters of the increase in poverty occurred before Tinubu assumed office in 2023.

The Fund further identified widespread insecurity, particularly in northern Nigeria where much of the country’s food production takes place, as a major threat to livelihoods and economic activity.

“Another risk to people and economic activity” is the persistent insecurity caused by armed groups, especially in regions critical to agricultural production, the IMF noted.

Meanwhile, inflationary pressures remain a concern. Nigeria’s inflation rate rose to 15.7 per cent in April, marking a five-month high, according to the latest official figures.

Analysts attributed the increase partly to higher global fuel prices linked to the ongoing conflict in the Middle East.

The IMF warned that although rising prices for food, fertiliser and fuel could increase government revenues due to Nigeria’s status as Africa’s largest oil producer, they could also worsen the cost-of-living crisis for vulnerable households.

The higher costs, the Fund said, could intensify inflationary pressures on poorer Nigerians, “potentially aggravating poverty and food insecurity.”

The report comes as Nigeria prepares for the next general election scheduled for January, with President Tinubu expected to seek a second term in office.

Business

Peter Obi accuses Tinubu of excessive borrowing without accountability

Published

2 days ago

June 9, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905774

Peter Obi, the Labour Party’s presidential candidate in the 2023 election, has criticised President Bola Tinubu’s administration over what he described as “excessive borrowing without accountability,” alleging that Nigeria’s rising debt profile reflects imprudent governance.

In a post shared on X, Obi claimed that the Tinubu administration had increased Nigeria’s total public debt to about N200 trillion, arguing that the country had accumulated more than N100 trillion in additional debt within three years.

According to him, the pace of borrowing under the current administration contrasts sharply with the debt accumulated during the eight-year tenure of former President Muhammadu Buhari.

Obi expressed concern over what he termed the lack of transparency surrounding the utilisation of borrowed funds, saying millions of Nigerians were already burdened by the implications of the country’s growing debt obligations.

Citing figures from the Federation’s Budget Office, the former Anambra State governor stated that the Federal Government borrowed N11.89 trillion between January and September 2025, exceeding the projected borrowing target of N10.34 trillion by about N1.54 trillion.

He argued that in a responsible system, such a deviation from approved borrowing plans should trigger scrutiny and detailed explanations from the relevant authorities.

Obi further alleged that only N3.10 trillion of the borrowed funds was channelled into capital expenditure during the same period, representing 17.66 per cent of the N17.58 trillion budgeted for capital projects.

He said this left a shortfall of approximately N14.48 trillion, equivalent to 82.34 per cent of the planned capital expenditure for the period.

“The most disturbing aspect of the financial management fiasco under Bola Tinubu is that there is no explanation or information regarding how the balance was utilised or deployed,” Obi said.

He questioned whether the funds had been spent on recurrent expenditure, used for other government activities, or diverted for political purposes, insisting that Nigerians deserved a clear account of how public resources were being managed.

“The question that Nigerians are rightly asking and deserve an answer to is what happened to the balance?” he stated.

Obi maintained that accountability and transparency remained essential to restoring public confidence in government finances and reiterated his belief that a “new and productive Nigeria is possible.”

The Federal Government has repeatedly defended its borrowing strategy, maintaining that loans are being deployed to finance infrastructure projects, support economic reforms and address fiscal challenges inherited over the years.

Business

Dangote refinery hits 700,000 barrel per day

Published

4 days ago

June 8, 2026

News Diggers

By Philippine Duru

philippineobetoduru@gmail.com

08034905773

Nigeria’s drive toward energy self-sufficiency has received a major boost as the Dangote Petroleum Refinery reportedly ramps up production to about 700,000 barrels per day (bpd), significantly increasing the supply of refined petroleum products to the domestic market and strengthening the country’s position in the global refining industry.
The development marks a significant milestone for the $20 billion refinery project, which has steadily increased its operational capacity since commencing production. Industry stakeholders say the higher output level is helping to ease fuel supply concerns, reduce dependence on imported petroleum products, and improve energy security in Africa’s largest economy.
Located in the Lekki Free Trade Zone in Lagos, the refinery was designed with a nameplate capacity of 650,000 barrels per day, making it the largest single-train refinery in the world. Recent reports indicating production levels approaching 700,000 barrels daily have fueled optimism about the facility’s ability to meet growing domestic demand while serving export markets across Africa and beyond.
The refinery’s rising output comes at a critical time when Nigeria is seeking to reduce the billions of dollars spent annually on fuel imports and conserve foreign exchange reserves. For decades, despite being one of Africa’s largest crude oil producers, Nigeria relied heavily on imported refined products due to inadequate domestic refining capacity.
Analysts say the increased production is already transforming the country’s downstream petroleum sector by ensuring a more stable supply of Premium Motor Spirit (PMS), commonly known as petrol, as well as diesel, aviation fuel, and other refined products.
“The refinery is gradually changing the dynamics of Nigeria’s fuel market,” said an energy analyst based in Lagos. “Higher production levels mean greater local availability of petroleum products, lower import dependence, and improved supply chain efficiency.”
The impact has been particularly evident in the petrol market, where increased local production has helped reduce pressure on fuel imports and improved product availability across the country. Industry operators note that the refinery’s growing output is also contributing to increased competition within the downstream sector.
Beyond the domestic market, the refinery has emerged as a significant exporter of refined products. Recent shipments of aviation fuel, diesel, and other petroleum products to Europe, Asia, and other international destinations have strengthened Nigeria’s position as a major refining hub.
The refinery’s export activities are generating valuable foreign exchange earnings and helping to improve the country’s trade balance. Energy experts believe the facility could eventually transform Nigeria from a net importer of refined petroleum products into a major exporter.
The increase in production has also created fresh opportunities for local crude oil producers. With a large domestic refining facility requiring substantial feedstock, upstream operators now have an additional market for their crude production, potentially reducing exposure to international market volatility.
Economic analysts argue that the refinery’s operations could have far-reaching implications for Nigeria’s economy. Increased local refining capacity is expected to support industrial growth, create jobs, stimulate related industries, and reduce logistics costs associated with importing refined products.
The development is also viewed as a positive signal for investors, demonstrating Nigeria’s capacity to execute large-scale industrial projects capable of attracting global attention and investment.
However, experts note that sustaining high production levels will depend on consistent crude oil supply, efficient logistics infrastructure, regulatory stability, and continued collaboration between industry stakeholders and government agencies.
The refinery’s growing role in the domestic market has coincided with efforts by authorities to deepen reforms in the oil and gas sector, improve transparency, and encourage greater private-sector participation across the petroleum value chain.
Market observers believe that as production continues to increase, consumers could benefit from improved fuel availability and potentially more stable pricing, although global crude oil prices and foreign exchange movements will continue to influence market dynamics.
For Nigeria’s broader economy, the refinery represents a strategic asset capable of strengthening energy security, reducing import dependence, supporting foreign exchange earnings, and accelerating industrial development.
With production reportedly reaching 700,000 barrels per day, the Dangote Refinery is increasingly positioning itself as a cornerstone of Nigeria’s energy transformation agenda and a major player in the global refining landscape.