Nigeria’s Week in Brief: Energy Deals, Economic Shifts, and Everyday Resilience

Welcome to this week’s edition of 234Digest. As always, I’m here to bring you the latest insights on Nigeria’s economy, business, and culture—delivered with context and clarity from an independent journalist on the ground.

I’m also excited to share some news I hinted at in our last deep dive: 234Digest is now available as a podcast! While I quietly launched the audio edition a few weeks ago, I’m now officially announcing it as part of our new weekly rhythm. Every Monday, you can listen to a concise roundup of the week’s biggest developments—perfect for when you’re on the move or want to catch up hands-free. The podcast version of our deep dives edition is also in the works.

Tune in for independent reporting, expert perspectives, and voices from across Nigeria—now in your inbox and in your ears—as a complement to this newsletter.

You can listen to the latest episode on Spotify here or find 234Digest Audio Briefs on your favorite podcast platform. It’s still work in progress, but I’m happy to share what I have now. I’d also love to hear what you think. Please send your feedback by replying this email.

Thank you for being part of this journey.

Let’s dive in.

—Samuel Okocha, Editor, 234Digest here.

Quote of the day:
“The most important resource we have as a people is not what is below our feet. It’s what is above our necks.”
—Engineer Oluwagbemi, Presidential CNG Initiative, at the West Africa Economic Summit.

Nigeria, Germany sign €20m energy pact

Nigeria and Germany have finalized a €20 million partnership to accelerate Nigeria’s shift to renewable energy and support broader energy transition goals.

The agreement, executed through Germany’s KfW Development Bank and the Africa Enterprise Challenge Fund, will fund vocational training, rural electrification, and technical upgrades aimed at reducing Nigeria’s dependence on fossil fuels.

The initiative is part of a wider €500 million German commitment to Nigeria’s energy and technology sectors.

Nigeria tightens oil export rules to curb theft

Nigeria’s oil regulator has introduced new rules requiring producers to obtain export permits, vessel clearance, and a unique identification number for every shipment, enabling real-time tracking of crude and petroleum exports.

The digital system, part of the Nigerian Upstream Petroleum Advance Cargo Declaration Regulation, aims to address chronic oil theft and under-declaration at export terminals—issues that have cost the country billions in lost revenue. All export documents must now reference the unique ID, ensuring traceability and compliance.

The reforms align Nigeria with global best practices and are expected to boost government revenue and investor confidence.

Banks face stricter provisioning, dividend curbs

Nigeria’s top banks will boost provisions provisions for bad loans and curb lending to clients exceeding regulatory limits, following a central bank directive that sparked a sell-off in banking shares.

The Central Bank of Nigeria (CBN) ordered banks with unresolved forbearance exposures to suspend dividends, defer executive bonuses, and halt new foreign investments until their books are regularized. The move, part of a broader post-pandemic tightening, aims to shore up capital buffers and restore confidence in a sector hit by rising credit losses and currency volatility.

Some banks have already cleared their forbearance positions, but the policy shift comes as cumulative loan impairment charges across the sector have surged to ₦3.77 trillion since 2023.

BNY Mellon launches global access to naira debt

Bank of New York Mellon, in partnership with Standard Bank, will offer global depositary notes backed by Nigerian sovereign debt, giving international investors streamlined access to the country’s high-yield, naira-denominated bonds.

The new notes, eligible for settlement through Euroclear and Clearstream, allow foreign investors to tap into 182-day treasury bills yielding 18.5% and benchmark bonds at 19.3%, among the highest returns in emerging markets. The initiative forms part of a broader push to deepen foreign participation in Nigeria’s local debt market, following recent reforms to stabilize the naira and improve investor confidence.

Dangote refinery to export gasoline to Asia

Nigeria’s Dangote refinery is exporting a 90,000 metric ton cargo of gasoline to Asia for the first time, marking a strategic shift as the $20 billion facility expands beyond West African markets.

Since commencing operations last year, the 650,000-barrel-per-day refinery has focused on regional exports. Analysts see the move as a sign of growing production stability and ambition to compete globally, as Dangote seeks the highest prices and new trading partners.

Sabi pivots to commodity exports, trims workforce

African B2B e-commerce startup Sabi has laid off 20% of its workforce as it pivots from retail digitization to focus on traceable commodity exports. The Lagos-based firm, which once served over 300,000 merchants, is now doubling down on its TRACE platform, exporting minerals and agricultural goods to buyers in the US, Europe, and Asia.

The shift reflects broader challenges in Africa’s B2B e-commerce sector, where thin margins and capital intensity have forced startups to seek more profitable, globally relevant business lines.

PZ Cussons exits Nigerian palm oil venture, trims profit outlook

UK-based consumer goods firm PZ Cussons has agreed to sell its 50% stake in Nigerian palm oil joint venture PZ Wilmar to partner Wilmar International for $70 million, as part of a broader retreat from Africa.

The move follows a strategic review and comes amid continued naira devaluation and inflation in Nigeria, which pushed the company to a £95.9 million loss last year. PZ Cussons also trimmed the top end of its profit guidance, citing higher UK recycling costs and weaker US sales.

Codix Bio ramps up local test kit production amid US aid cuts

Codix Bio, a Nigerian manufacturer, is set to produce millions of HIV and malaria rapid test kits at a new facility outside Lagos, filling supply gaps left by recent US aid cuts. The plant, launched in partnership with South Korea’s SD Biosensor and supported by the WHO, will initially produce 147 million kits annually, with potential to expand to 160 million. The move comes as Nigeria, which bears 27% of the global malaria burden and ranks fourth in HIV cases, seeks to reduce reliance on imported diagnostics and donor funding.

CNG rollout hampered by shortages

Nigeria’s push to promote compressed natural gas (CNG) as a cheaper, cleaner alternative to petrol has been marred by infrastructure shortages and long queues at filling stations.

Motorists in Abuja report waiting hours or even days to refuel. The government’s goal of converting a million vehicles by 2026 faces hurdles, as inadequate delivery infrastructure and high conversion costs frustrate users and threaten to undermine the clean energy transition.

Benin Bronzes returned in landmark repatriation

Nigeria has received its largest repatriation of looted cultural artifacts to date from the Netherlands, including several iconic Benin Bronzes.

The return, which follows a formal transfer of ownership in February, marks a milestone in the global movement to restore African heritage and is seen as a reclamation of history and identity for the Kingdom of Benin.

Nigeria and Benin sign regional integration pact

West Africa’s inaugural economic summit in Abuja saw Nigeria and Benin sign a new integration agreement, hailed as a model for regional cooperation.

The pact aims to deepen economic ties and accelerate reforms, with leaders calling for urgent action to dismantle trade barriers and align education with industry needs. The summit also saw the launch of a World Economic Forum partnership to streamline trade and regulatory services, in line with AfCFTA protocols.

Photo of the day:

And that’s a wrap.  A huge thanks for reading, as we keep tabs on Nigeria’s evolving story. Keep an eye for the next dispatch—a deep dive into a major news topic— arriving this week. Enjoy the rest of the week ahead.

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