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President Tinubu To Boost Nigeria’s Oil Production By 1m BPD

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In a renewed bid to grow Nigeria’s crude oil output significantly in the next 12 months, President Bola Tinubu on Monday launched the ‘1MMBOPD’ Initiative meant to raise production by 1 million barrels per day, by harnessing dormant oil assets and optimising existing ones.

 

At the event in Abuja, which coincided with the 3rd anniversary of the establishment of the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), International Oil Companies (IOCs), indigenous oil producers, banks and oil and gas service providers pledged to support the federal government in the new efforts.

 

The programme organised by the NUPRC was themed: “Transformation, Innovation & Excellence“ and featured the ‘who is who’ in the country’s oil, gas and banking sectors.

 

Tinubu stressed that his policy interventions in the oil industry were beginning to bear fruits, expressing confidence in the long-term benefits of the industry’s policy reforms for the good of the country’s over 200 million people.

 

Represented by the Secretary to the Government of the Federation (SGF), Senator George Akume, the president noted that even though the oil and gas industry had long been the lifeblood of Nigeria’s national economy, the current administration was working tirelessly to change this and diversify the economy from over-reliance on the production of fossil fuels.

 

However, Tinubu noted that his administration was also determined to maximise its revenue potential from the country’s nature-endowed hydrocarbon resources while focusing on decarbonisation approaches to oil and gas production.

“A renewed drive to economic diversification using the oil and gas industry has evolved, and remains on track to expand government revenue and deploy it to generate employment, eliminate poverty, and grow our gross domestic product in the spirit of shared prosperity.

 

“We have set a clear roadmap for the oil and gas sector to deepen value from the nation’s substantial resource potential and create opportunities for investors, both local and foreign. Since I declared that Nigeria is indeed open for business, I am delighted that we have witnessed the major financial and investment decisions in the sector across the value chain since then.

 

“To this end, we must work concertedly to create vibrancy across the sector of oil and gas production to meet domestic and international needs and shore up our foreign exchange. The two-pronged target is necessary to deliver the dividends of good government for our people and justify the trust reposed in us by the citizens during these trying times.

 

“Early on, we took decisive steps to vacate the encumbrances of investment in the oil and gas sector and entrench the ease of real business. We have issued five executive orders to provide fiscal incentives for investment in Nigeria’s oil and gas sector. We are working with the legislative arm of government to fully implement some of these reforms, as statutory changes will be required in some areas,” he stated.

 

The president congratulated all active oil and gas industry players for the modest gains in oil production, which he said has now risen to 1.6 million barrels per day.

 

According to him, ‘Project 1 million bpd’ is a giant step forward for the oil and gas industry, designed to grow sustainably in direct response to his charge to increase production. He explained that by enhancing domestic energy security and supporting economic vibrancy, the initiative will ensure that Nigeria remains a crucial player in the global energy landscape amid the worldwide energy transition.

 

“ Increased oil production will lead to more job opportunities, increased revenue for the government, and a more stable energy supply for our dear citizens. The project is not just a government one, but a collaborative undertaking involving major producers, service providers, financiers, and other key stakeholders.

 

“These commitments will be critical in ensuring that we achieve our incremental targets in the next 12 months, growing not just the production levels but also increasing the efficiency and competitiveness of our industry.

 

“ There will be challenges along the way, such as technical issues, market fluctuations, and regulatory burdens, but with our collective efforts, we are confident that we can overcome these challenges and achieve our goal,” Tinubu emphasised.

 

In his presentation, the Commission Chief Executive, NUPRC, Gbenga Komolafe, said that in the last three years, the commission had made significant strides towards attaining critical goals despite the persistent challenges of the global push for energy transition and the call for defunding of fossil fuel.

 

He listed them as development of regulations, growth in oil and gas reserves, rise in level of upstream activities, conclusion of the 2020 marginal bid round and issuance of awards with an anticipated 60,000 bpd and 90MMscfd of incremental oil and gas production, among others.

 

To enhance investment attractiveness and improve global competitiveness, the licensing framework for the ongoing bid rounds, Komolafe said, was optimised to vacate entry barriers and eliminate huge asset acquisition fees.

 

On energy sustainability, decarbonisation and environment stewardship, he stated that the NUPRC has retooled its regulatory instruments to incorporate emissions reductions.

 

At the event, the NUPRC also announced the approval of the much awaited $1.28 billion Seplat-Mobil divestment transaction as well as TotalEnergies EP Nigeria deal with Telema Energies.

 

“Divestment is an acknowledged practice and within the right of investors in business decisions globally. In recognition of this, as a nation, Nigeria is fully committed to the philosophy of free entry and free exit as further reiterated by our dear President Tinubu on October 1, 2024, speech.

 

“A total of four (representing 80 per cent) passed regulatory test and secured ministerial consent. The transactions are: Mobil Producing Nigeria Unlimited (MPNU) to Seplat Energy Offshore Limited; Equinor Nigeria Energy Company Limited to Project Odinmin Investments Limited; Nigerian Agip Oil Company Limited to Oando Petroleum and Natural Gas Company Limited and TotalEnergies EP Nigeria Limited to Telema Energies Nigeria Limited.

 

“However, the divestment of Shell Petroleum Development Company Limited’s assets to Renaissance Africa Energy Company Limited could not scale regulatory test,” Komolafe said, confirming THISDAY’s story earlier on the rejection of the $1.3 billion bid.

 

Also speaking, Chairman Heirs Holdings, UBA and Transcorp Groups, Tony Elumelu, said that Nigeria is currently faced with the threat of declining production and investment.

 

“We must acknowledge the elephant in the room. Nigeria’s oil production has been on a downward trajectory, falling from peaks of over 2 million barrels per day to recent lows, below 1.5 million. This decline translates to lost revenues, reduced global market share, and missed opportunities for national development.

 

“The root causes are multifaceted: Aging infrastructure, security challenges in the Niger Delta, stalled investments, regulatory uncertainties, and a global shift towards renewable energy that has compounded the investment challenge.

 

“These factors, combined, threaten the very foundation of our economy, as we are heavily dependent on oil. As a nation, we cannot permit this to continue, and squander our inheritance and betray our next generation,” Elumelu stated.

 

He highlighted that this is where ‘Project 1MMBOPD’ is so critical, a crucial part of the solution to unlocking the next phase of Nigeria’s development.

 

“By targeting to grow production by 1 million barrels of oil per day from current levels, we are setting a clear and challenging goal. To be sustainable, this initiative should go beyond just increasing production; it should catalyse a comprehensive strategy to revitalise our entire upstream sector,” he observed.

 

He listed infrastructure modernisation, security enhancement, regulatory streamlining, investment attraction, technology adoption as some of the measures to optimise production.

 

“By addressing these areas comprehensively, we will not only aim to reach the 1MMBOPD target but also to create a sustainable framework for future growth. As we embark on this ambitious project to boost our oil production, let us also keep our focus on the critical role of gas in our energy mix.

 

“The path to 1MMBOPD must be constructed on strategies that maximise the value of our gas resources, reducing flaring and increasing utilisation for domestic and export markets,” he added.

At Heirs Energies, in the first 100 days after the company took over operational control of its OML-17 asset in 2021, he said the company doubled its production from 28,000 to over 50,000 barrels per day.

 

However, he added: “We suffered a setback with unabated crude theft, which caused us to shut-in and work collaboratively with the Nigerian National Petroleum Company Limited (NNPC) to better secure the pipeline system.

 

“From a low of 5 per cent terminal receipts in December 2021, year-to-date in 2024, we have recorded an average terminal receipt of 85 per cent; a remarkable improvement and a good example of what a purposeful collaboration between NNPC and operators underpinned by rigorous execution can deliver.

 

“With the improvement in the operating environment, we have restarted our investment and production growth journey, and have now successfully reversed the fall in production that we suffered in 2022 and 2023, as a consequence of the evacuation challenges. A few days ago, OML-17 attained over 51,000 barrels per day, and we continue our production growth journey.”

 

Also speaking, NNPC’s Group Chief Executive Officer, Mele Kyari, said that it was time to walk the talk, noting that the oil industry must move beyond powerpoint presentations.

 

“Whatever we need to do, we have a clear roadmap, a specific timeline. And indeed, a very specific contracting process. We think our environment is today very competitive for producing oil.

 

“The second part of it is about the contracting. As we know, it is very good to have Nigerian content and Nigerian contractors should be encouraged to build local companies. Everybody agrees to this. But it has created a new challenge.

 

“And what the executive order did is to bring them (service providers) back. So that when you are going to have local partners, they must be specific around what they are going to do. So that instead of carrying a briefcase, the people will now be doing specific things.

 

“And we have now engaged many of these critical contractors, and many of them are on their way back into our country. And we have substantial indications that they will do this. And lastly, why would anyone put his money into our country, into our assets, when he is not sure of evacuating the production? And the onshore in particular, nobody would do it.

 

“So we agree that we must replace the pipeline infrastructure. There is no alternative. The best of intention, the best of security intervention will still give you probably 50 per cent of the installed capacity today,” he argued.

 

At the programme, the Minister of State (Oil), Senator Heineken Lokpobiri and his counterpart in the Ministry of Gas, Ekperikpe Ekpo, assured the industry players of the government’s willingness to clear all the existing bottlenecks.

 

Lokpobiri stressed that the set target of an additional 1 million barrels per day was achievable, assuring of the president’s political will to get things done.

 

The chief executives of major oil producers, including those of Shell; Total Energies; ExxonMobil; Chevron; Oando; Agip as well as independent producers like First E&P; Waltersmith; Oriental Energy Resources; Seplat, Heirs Energy and Matrix Energy all pledged to ensure that the new target is achieved.

 

In addition, funders and strategic service providers like UBA; Geoplex, Standard Chartered Bank; Mercurial and SLB all promised to work to ensure that the oil industry in the country is revamped.

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Late Tax Payments Attract New Interest Rates From October 1

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The federal government says late tax payments will attract new interest rates from October 1, 2026.

 

According to a statement by the ministry of finance, the new rates are linked to market interest rates and will be set for each calendar month.

Under the order, interest on tax payable in naira will be charged at the Central Bank of Nigeria (CBN’s) monetary policy rate (MPR) plus one percentage point, compared with the previous five-percentage-point spread.

However, the ministry said the rate would not fall below the yield on 364-day treasury bills.

This means that since the MPR is 23 percent, taxpayers who pay late would be charged 24 percent interest on the delayed tax, subject to the 364-day treasury bill yield floor.

For tax payable in foreign currency, the statement said the interest rate will be the secured overnight financing rate (SOFR) plus 6 percentage points. The SOFR stands at 22.12 percent for the 30-day average and 22.59 percent for the 90-day average as of September 24, 2026.

The ministry said the new rates would provide taxpayers with greater certainty over the cost of late payment, which it said has been linked more closely to prevailing market rates.

Speaking on the move, Taiwo Oyedele, minister of finance and coordinating minister of the economy, said the new framework would ensure that delaying tax payments does not become a cheaper source of credit than borrowing from the market.

“Tax that is due belongs to the public. When it is paid late, Government may have to borrow to fill the gap, and the cost falls on everyone,” Oyedele said.

“This Order ties the cost of late payment to real market rates, so that delaying tax does not become a cheaper form of credit than the market itself.”

The ministry said under the order, one interest rate would apply for each calendar month and would be determined on the last business day of the preceding month.

“The Nigeria Revenue Service (NRS) is required to publish the applicable rate on its website by the third business day of every month,” the statement added.

The ministry said interest would be calculated as simple interest on a daily basis, from the date the tax becomes due until payment is made.

For foreign-currency tax, the ministry said SOFR would apply as the international benchmark for US dollar rates, noting that if the SOFR is discontinued, its official successor rate would apply.

Oyedele said the arrangement would also provide a uniform basis for taxpayers dealing with federal, state and FCT tax authorities.

“Just as important is certainty. Every taxpayer, whether dealing with the Nigeria Revenue Service or a State revenue service, will know the rate in advance, see it published every month, and be charged in the same way,” he said.

“Clear rules make compliance easier and support a fair, predictable tax system.”

The ministry said the order does not change the 10 percent penalty for late payment provided under section 65 of the Nigeria Tax Administration Act (NTAA), 2025.

“The relevant tax authorities may also waive interest or penalties where good cause is shown, in line with section 66 of the Act,” it said.

The ministry said the new rates would apply to interest arising from October 1, including interest on tax that became due before that date.

“Interest that arose before October 1 will not be affected to the extent that it was specifically provided for under the rules in force at the time,” the statement said.

The finance ministry said the order supersedes the 2017 notice on interest on unpaid taxes and other earlier notices on the subject.

The ministry said the framework applies to self-assessment taxpayers, the NRS, and state and Federal Capital Territory (FCT) internal revenue services.

The ministry advised taxpayers to file their returns and pay applicable taxes on time.

It also advised taxpayers with outstanding liabilities to settle them promptly or engage the relevant tax authority.

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Adron Homes Unveils Premium Estate Plan in Ile-Ife Ahead of Olojo Festival

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Adron Homes and Properties is set to participate in the 11th Olojo Festival in Ile-Ife, Osun State, as the company deepens its engagement with the ancient city and unveils plans for a Premium Estate development within the Ile-Ife domain.

 

The 2026 edition of the renowned cultural festival, themed “Culture Preservation Through Sustainable Tourism,” is expected to bring together traditional rulers, government representatives, corporate organisations, cultural stakeholders, tourists and the media for a celebration of Yoruba heritage and the cultural significance of Ile-Ife.

Ahead of the festival, Adron Homes made a strong appearance at the press conference and unveiling of the 2026 edition with a delegation comprising key members of its Western operations.

 

 

The delegation included Ogundapo Odunola, Deputy Managing Director, Western Super-Cluster; Johnson Olugbenga, Assistant Managing Director, Western Galaxy 1; and Shobowale Taiwo, Deputy Sales Manager, Livingspring World.

Their presence reflected the company’s growing development interests in Ile-Ife and its commitment to initiatives that connect real estate development with cultural heritage and community growth.

Speaking at the event, Seyi Oyekunle, Director General, Media, Branding & Corporate Communication, Adron Group, who represented the Managing Director of Adron Homes and Properties, Mrs Adenike Ajobo, said the company’s participation in the Olojo Festival was driven by its belief that cultural preservation and sustainable development could work hand in hand.

Oyekunle described the theme of the festival as timely, noting that culture remains an important part of identity and history, while sustainable tourism can create opportunities for employment, investment, entrepreneurship and community development.

He described Olojo as more than an annual cultural celebration, saying it represents the enduring connection between the past, present and future of Ile-Ife and its place in Yoruba civilisation.

According to him, Adron Group’s vision extends beyond conventional real estate development.

“At Adron Group, we are in the business of real estate, but our purpose is much bigger than the development of properties. We build homes. We build cities. We build communities,” he said.

A major highlight of the company’s participation was the unveiling of plans for the Adron Homes Premium Estate within the Ile-Ife domain.

Oyekunle expressed appreciation to the Ooni of Ife, His Imperial Majesty, Oba Adeyeye Enitan Ogunwusi, Ojaja II, for the confidence and approval granted to Adron Homes and Properties for the development.

He said the approval comes with a strong responsibility for the company to contribute meaningfully to the development of Ile-Ife while respecting the city’s rich historical and cultural heritage.

According to him, Adron Homes is prepared to deploy its experience, resources and development capacity towards delivering a project capable of creating value for residents and contributing to the growth of the community.

He described the Premium Estate as more than a property development, saying it presents an opportunity to attract investment, provide quality housing, stimulate local businesses and strengthen the connection between Ile-Ife and sons and daughters of Ifeland and Yorubaland across the world.

The Adron Group representative said the development could provide an avenue for people in the diaspora to reconnect with the Source by creating opportunities to “come home, invest home, build home and preserve home.”

He also called for greater development of Ile-Ife as a year-round tourism destination, stressing that the city’s tourism potential should extend beyond the annual Olojo Festival.

Oyekunle said sustainable tourism should translate into tangible economic opportunities for residents, particularly artisans, young people, entrepreneurs and operators within the hospitality sector.

He further urged young people to view Yoruba culture and heritage as potential sources of economic opportunity, noting that the sector could inspire careers and businesses across film, technology, fashion, music, arts and tourism.

 

The Olojo Festival press conference brought together traditional rulers, government representatives, corporate organisations, members of the Olojo Festival Committee, cultural stakeholders and media practitioners ahead of the 11th edition of the festival.

As Adron Homes prepares for its participation in the festival, the company’s Premium Estate plan adds a major real estate dimension to its engagement with Ile-Ife, reinforcing its vision of “Building Homes, Cities and Communities Across the Globe.”

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FG To Review Tax Laws

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The Federal Government has commenced a six-week review of the new tax laws to identify implementation gaps, address consequences that have emerged since their implementation and consider concerns raised by the organised private sector and other stakeholders.

 

The review will examine areas including Value Added Tax thresholds, withholding tax, capital gains treatment and multiple taxation.

Recall that President Bola Ahmed Tinubu last year signed into law four new tax bills passed by the National Assembly, describing the laws as pivotal to the success of his administration’s reforms and the country’s prosperity.

The bills were the Nigeria Tax Bill (Ease of Doing Business), which seeks to consolidate Nigeria’s fragmented tax laws into a harmonised statute; the Nigeria Tax Administration Bill, which establishes a uniform legal and operational framework for tax administration across the federal, state and local governments.

Others are the Nigeria Revenue Service (Establishment) Bill, which repeals the Federal Inland Revenue Service Act and creates a more autonomous and performance-driven national revenue agency, the Nigeria Revenue Service (NRS); and the Joint Revenue Board (Establishment) Bill, which provides a formal governance structure to facilitate cooperation between revenue authorities at all levels of government.

While inaugurating the Technical Subcommittee on Fiscal Policy and Tax Reforms in Abuja yesterday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said implementation of the new laws had exposed areas requiring clarification and further reforms.

“The real test begins when the law meets the economy, as businesses interpret it, administrators implement it, investors respond to it, and citizens experience it. Implementation inevitably reveals areas requiring clarification, refinement or further reform,” the minister said.

Oyedele said the government was shifting from fundamental tax reforms to continuous improvement, stressing that the review was not intended to reverse the 2025 reforms.

He said, “The Finance Bill 2027 should not be seen as just another annual legislative exercise. Our task is not to rewrite the 2025 reforms, but to preserve their fundamental principles while learning from implementation and responding to new economic realities.

“We must ask where implementation has revealed ambiguity, where unintended consequences have emerged, where compliance can be simplified, and where we can improve investment and competitiveness.”

The review will also cover fiscal policy and management, public financial management, debt, transparency, capital markets and cross-border capital flows.

According to Oyedele, the government received 134 submissions from across Nigeria’s geopolitical zones after inviting public input, alongside additional submissions made in hard copy.

Preliminary concerns raised by stakeholders included calls to clarify and simplify VAT thresholds, withholding tax and capital gains provisions.

Stakeholders also proposed stronger measures against multiple taxation and improved coordination among revenue authorities.

They called for greater digitalisation and data sharing to prevent taxpayers from repeatedly submitting information already available to government agencies.

Other proposals included stronger taxpayer rights, faster refunds, safeguards for small businesses and measures to improve investment and competitiveness in mining, renewable energy, healthcare and capital markets.

Oyedele urged the subcommittee to assess the economic impact of proposed changes, particularly on low-income households, workers and businesses.

“Every tax reform produces winners and losers; the question is whether a policy is fair, efficient and competitive, not whether it is popular with everyone,” he said.

He added, “A provision that raises revenue may impose a far greater cost on the wider economy. The government must optimise the whole economy, not merely achieve a single objective.”

The minister warned that complicated tax rules could increase compliance costs for businesses.

Beyond preparing recommendations for the Finance Bill 2027, the subcommittee will review the Deduction of Tax at Source Regulations 2024 and prepare revised withholding tax regulations.

It will also review the Companies Income Tax (Significant Economic Presence) Order 2020 and develop an updated framework aligned with the new tax laws and international practices.

The Permanent Secretary of the Federal Ministry of Finance chairs the subcommittee, while Chairman of the Tax Advisory Committee Albert Folorunsho serves as co-chair.

Members include representatives of the Federal Ministry of Justice, Nigeria Revenue Service, Joint Revenue Board, Nigeria Customs Service, Central Bank of Nigeria, Debt Management Office, Budget Office of the Federation and Nigerian Investment Promotion Commission.

Other members are drawn from the Small and Medium Enterprises Development Agency of Nigeria, Manufacturers Association of Nigeria, Nigerian Economic Summit Group, Nigerian Bar Association, Association of National Accountants of Nigeria, Chartered Institute of Taxation of Nigeria and Institute of Chartered Accountants of Nigeria.

Representatives of the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture and the Big Four accounting firms — Deloitte, EY, KPMG and PwC — are also members.

The Nigeria Tax Act 2025, Nigeria Tax Administration Act 2025, Nigeria Revenue Service (Establishment) Act 2025 and Joint Revenue Board (Establishment) Act 2025 took full effect on January 1, 2026.

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