Nigeria’s energy sector repositions as monetary policy eases and aviation expands

This week’s signals reflect the tension and transformation shaping Nigeria’s energy and economic landscape.

A labour dispute at the Dangote Refinery threatens to disrupt fuel supply to a nation heavily reliant on stable energy flows, highlighting the complex interplay between industrial relations, national economic security, and the strategic ambitions of Africa’s most populous economy.

Meanwhile, Shell and Agip are expanding their stake in the offshore Bonga oilfield as TotalEnergies exits, part of a strategic shift toward deepwater assets amid onshore divestments.

In aviation, Nigeria is reviewing certification for China’s C919 jet, a move that could reshape regional fleet dynamics and deepen ties with Beijing. On the monetary front, the Central Bank cut its benchmark interest rate for the first time in five years, responding to easing inflation and steady growth.

Seplat Energy is also making bold moves, unveiling a $3 billion investment plan to boost oil and gas output, a signal to the growing role of indigenous firms in Nigeria’s energy future.

As always, thanks for joining me as we chronicle Nigeria’s evolving economic story, tracking the signals that matter with clarity and insights.

Its a sunny Monday in the Nigerian capital and its just past 5 p.m. as I hit send on this one. Let’s get into it.

—Samuel Okocha, Editor, 234Digest here.

Quote of the Day

“All outstanding issues, particularly the dispute between the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) and Dangote Refinery, are being addressed with urgency and in good faith. The federal government remains fully committed to ensuring energy security, protecting consumers, and maintaining stability in the domestic petroleum products market.”

— Mohammed Manga, Director, Information and Public Relations, Federal Ministry of Finance, Nigeria, September 28, 2025.

Dangote refinery labour dispute risks disrupting Nigeria’s fuel supply

Dangote Industries Ltd. has sought intervention from Nigerian authorities following a directive from the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN) to halt crude and gas supplies to its refinery.

The move stems from a labor dispute over the dismissal of over 800 unionized Nigerian workers, who PENGASSAN claims were replaced primarily with Indian expatriates. Dangote, however, attributes the layoffs to alleged sabotage and operational restructuring. The union's directive has raised concerns about potential disruptions to fuel supply and the impact on Nigeria's energy security.

In response, the Federal Ministry of Finance has pledged to engage with relevant stakeholders to resolve the impasse and sustain energy security. At the weekend, the ministry's intervention led to a resumption of petrol sales in naira by Dangote Refinery.

Nigeria advances civil aviation with possible certification of Chinese C919 jet

Nigeria’s civil aviation authority is reviewing certification for the C919, a narrow-body jet developed by China’s state backed COMAC, as the country seeks to expand its fleet.

The move is seen as part of Nigeria’s efforts to diversify its aviation supply chain and strengthen ties with with Beijing. The C919, which has garnered interest from several global carriers, is positioning itself as a viable alternative to planes from Airbus SE and Boeing Co. in regional markets.

Shell and Agip expand stake in offshore Bonga oilfield as TotalEnergies exits

The Nigerian Upstream Petroleum Regulatory Commission approved TotalEnergies’ $510 million sale of its 12.5% interest in OML 118 to Shell and Eni SPA’s Agip.

The sale allows Shell to boost its stake to 65% after acquiring a 10% interest, further concentrating its Nigerian portfolio on offshore assets after shedding onshore fields plagued by spill-related liabilities. Eni’s stake rises to 15% with its $102 million purchase of 2.5% of the remaining interest.

The deal, pending ministerial approval, includes obligations to decommissioning and community commitments.

Central Bank cuts benchmark lending rate for first time in five years

The Central Bank of Nigeria slashed its key interest rate by 50 basis points to 27%, following sustained inflation declines.

Year-on-year inflation fell to 20.12% in August. Nigeria’s economy expanded 4.23% in the second quarter. This rate cut mirrors easing monetary policy trends across leading African economies amid more stable macroeconomic conditions.

Seplat Energy unveils $3 billion investment plan to boost oil and gas production

Seplat Energy Plc, Nigeria’s independent oil and gas firm, is aiming to drill 120 wells and develop three gas projects over five years, projecting cumulative cash flows of $6 billion by 2030.

The initiative highlights rising indigenous leadership in Nigeria’s oil sector. Seplat is also exploring a potential reduction of its stake in a joint venture with with Nigeria’s state oil firm NNPC to 30%, further shaping its portfolio.

Words of wisdom: "The only limit to our realization of tomorrow will be our doubts of today,"—Franklin D. Roosevelt

Photo of the day

And that’s it for today. Thanks again for joining on this week’s chronicle of Nigeria’s evolving economic story. Until the next dispatch on Monday, have a fantastic week ahead.