Welcome to 234Digest, your concise reader focused round-up of Nigeria’s key developments in economy, business, and culture.

This week, we track a credit rating upgrade, a major urban transport project, seismic shifts in energy and trade, the human cost of climate disasters, a landmark oil sector directive, and a cultural milestone for Enugu State—all as Africa’s most populous country mark two years of President Tinubu's reform drive. Let’s dive in.

Samuel Okocha. Editor, 234Digerst here.

Quote of the day

“Despite the bump in the cost of living, we have made undeniable progress.”

—President Bola Tinubu, in a national address to mark the end of his second year in office.

Today's briefs

Moody’s upgrades Nigeria’s credit rating, citing reforms

Nigeria’s sovereign credit rating was upgraded by Moody’s to B3, six notches below investment grade, with a stable outlook.

The agency cited the removal of fuel subsidies, a more flexible exchange rate, and improved fiscal management as key drivers. President Bola Tinubu welcomed the move, calling it “a validation of our commitment to restoring investor confidence and unlocking economic potential.” Moody’s noted that progress is expected to continue, albeit at a slower pace if oil prices weaken.

The upgrade is expected to lower Nigeria’s borrowing costs and bolster access to international capital.

Tinubu signs landmark order to boost oil investment and cut costs

President Tinubu has signed a sweeping Executive Order designed to lower project costs, attract investment, and enhance revenues from Nigeria’s oil and gas sector.

The Upstream Petroleum Operations Cost Efficiency Incentives Order (2025) introduces performance-based tax incentives for operators who achieve verifiable cost savings, with the Nigerian Upstream Petroleum Regulatory Commission to publish annual cost benchmarks by terrain. Crucially, the new directive caps available tax credits at 20% of a company’s annual tax liability, protecting government revenues while rewarding efficiency.

“This Order is a signal to the world: we are building an oil and gas sector that is efficient, competitive, and works for all Nigerians,” Tinubu said. Implementation guidelines are pending.

Lagos launches €410m water transport project to ease gridlock

Lagos State, Nigeria’s commercial hub, will break ground this month on the €410 million ($464 million) Omi Eko water transport project, in partnership with the European Union and other international financiers.

The initiative will dredge 15 ferry routes, deploy 78 electric ferries, and build or upgrade 25 terminals by 2030, integrating waterways into the city’s transport network. Officials say the project will cut traffic congestion, stimulate waterfront economies, and set a benchmark for sustainable urban mobility in Africa.

Dangote refinery ends Nigeria’s era as Africa’s top fuel importer

Nigeria has lost its long-held status as Africa’s largest importer of refined fuel, thanks to the ramp-up of the Dangote mega-refinery near Lagos.

The $20 billion, 650,000-barrel-a-day plant has sharply reduced Nigeria’s need for imported petrol, with South Africa now taking the top spot for fuel imports. Consultancy CITAC reports Nigeria imported just 3.1 million tonnes of refined products in Q1 2025, compared to South Africa’s 4.2 million tonnes. Dangote’s output is reshaping trade flows and boosting hopes for energy self-sufficiency.

Meanwhile, the refinery continues to supplement local crude with international supplies, planning to import at least five million barrels of U.S. WTI crude in July, following a record June buying spree. Industry sources say Dangote is importing about 161,000 barrels per day of WTI in July, after booking 300,000 barrels daily in June.

Shell doubles down on deepwater as TotalEnergies exits Bonga oilfield

Shell has agreed to buy TotalEnergies’ 12.5% non-operating stake in the Bonga deepwater oilfield for $510 million, increasing its interest in the OML118 production sharing contract to 67.5%.

The move comes as Shell pivots to deepwater and gas operations, having recently sold its onshore subsidiary to Renaissance. A consortium of five Nigerian production and exploration companies—ND Western, Aradel Energy, Petrolin, FIRST E&P and Waltersmith—own Renaissance.

TotalEnergies said the sale is part of a wider strategy to focus on assets with lower costs and emissions, while it advances new gas projects in Nigeria.

Deadly floods hit Niger State as climate risks grow

At least 151 people died and more than 3,000 were displaced after severe flooding struck Mokwa in Niger State last week.

The disaster, caused by torrential rains and swollen rivers, destroyed hundreds of homes and bridges, leaving families stranded and rescue efforts ongoing. Mokwa is a key transit hub for food and trade between Nigeria’s north and south, raising concerns about food supply as inflation, driven by high food prices, is only just beginning to ease.

The country’s rainy season is expected to bring further flood risks in the coming months.

Enugu to host 2025 National Festival of Arts and Culture

Enugu State has been awarded hosting rights for the 2025 National Festival of Arts and Culture (NAFEST), themed “Connected Culture.”

The event, scheduled for November 22–29, will bring together over 30 states and more than 5,000 competitors and foreign participants. Obi Asika, Director-General of the National Council for Arts and Culture, praised Enugu’s rich heritage and recent progress, saying the festival would boost economic growth and youth empowerment in the region.

Established after the civil war to foster national unity, NAFEST was last held in Abuja.

Tinubu marks two years, touts reforms amid persistent hardship

President Tinubu marked his second anniversary in office by insisting that his reforms—removal of petrol and electricity subsidies, currency devaluations, and tighter fiscal policy—are working.

He pointed to a sharply reduced fiscal deficit (3.0% of GDP in 2024 from 5.4% in 2023) and a rebound in growth, with the World Bank projecting 3.7% GDP expansion this year, the fastest in nearly a decade. However, inflation remains above 23%, the naira has sharply devalued, and millions still face a cost-of-living crisis. Security remains fragile, with Amnesty International reporting over 10,000 killed in attacks since Tinubu took office.

Photo of the day

Thank you for reading 234Digest. For more on Nigeria’s economic reforms, business landscape, and cultural shifts, stay tuned for next week’s edition. New here? Subscribe here and get the next edition straight to your inbox (every Sunday)—plus exclusive deep dives once a week. Until the next dispatch arrives, have a fantastic week ahead and a happy new month.