Business
Tinubu Orders Direct Oil Revenue Remittance, Strips NNPC of Deductions
President Bola Tinubu has signed an Executive Order mandating that all oil and gas revenues be paid directly into Nigeria’s Federation Account, effectively ending the Nigerian National Petroleum Company Limited’s (NNPC Ltd) long-standing practice of deducting significant sums before remittance. The order, signed on February 13 and gazetted on February 18, is aimed at boosting government revenues and curbing what officials describe as “wasteful deductions.”
Bode Animashaun
Background
Under the 2021 Petroleum Industry Act (PIA), NNPC Ltd was permitted to retain portions of oil proceeds through mechanisms such as:
- A 30% management fee on profits from production-sharing contracts.
- A 30% Frontier Exploration Fund for inland oil exploration.
- A 20% working capital reserve.
Critics, including the Budget Office, argued that these deductions diverted nearly 60% of gross oil income away from the Federation Account, leaving less for federal, state, and local governments.
The Executive Order
The new directive abolishes NNPC’s authority to:
- Collect the 30% management fee.
- Retain the Frontier Exploration Fund.
- Serve as a middleman for royalties, taxes, and gas flare penalties.
Instead, all revenues and penalties must now flow directly to the Federation Account Allocation Committee (FAAC). The Presidency emphasized that NNPC should operate strictly as a commercial entity, not as a revenue gatekeeper.
Industry Reaction
The move has sparked debate within Nigeria’s oil and gas sector. Governance experts note that while the Executive Order is legally grounded in constitutional provisions, it may require amendments to the PIA for long-term consistency. Some stakeholders, including the Petroleum and Natural Gas Senior Staff Association of Nigeria (PENGASSAN), have criticized the order as undermining the PIA framework.
Next Steps
An Implementation Committee led by Finance Minister Wale Edun will oversee the transition. The Presidency has signaled its intent to pursue legislative changes to the PIA, describing the Executive Order as an “emergency brake” rather than a permanent fix.
For ordinary Nigerians, the government argues that the measure should translate into more funds available for salaries, healthcare, education, and infrastructure.
The Opportunities Ahead
- Increased Government Revenue Direct remittance into the Federation Account should boost funds available to federal, state, and local governments for salaries, healthcare, education, and infrastructure.
- Transparency & Accountability Removing NNPC as a middleman reduces opacity in oil revenue flows, aligning Nigeria more closely with global best practices in resource governance.
- Investor Confidence Clearer fiscal rules and stronger oversight could reassure international investors that Nigeria is serious about reforming its oil sector.
- Alignment with Constitutional Mandates The order reinforces Section 44(3) of Nigeria’s Constitution, which vests mineral ownership and revenue rights in the federal government.
Risks and Policy Uncertainty
- Legal & Policy Uncertainty The Executive Order may clash with provisions of the Petroleum Industry Act (PIA). Industry unions like PENGASSAN have already called it a “direct attack” on the law, raising the risk of litigation or policy reversals.
- Operational Disruption at NNPC Stripping NNPC of revenue retention could affect its ability to fund operations, investments, and exploration activities without clear alternative financing mechanisms.
- Investor Concerns Over Stability Sudden policy shifts may unsettle investors who value predictability. If the PIA is amended too frequently, it could signal regulatory instability.
- Implementation Challenges Transitioning revenue flows directly to FAAC requires robust systems. Weak enforcement or bureaucratic delays could undermine the intended benefits.
Summary Table
| Aspect | Opportunities | Risks |
|---|---|---|
| Revenue | More funds for public services | NNPC may face funding shortfalls |
| Governance | Greater transparency | Legal disputes with PIA provisions |
| Investment | Improved confidence | Fear of regulatory instability |
| Operations | Streamlined remittance | Implementation challenges |
Conclusion
This Executive Order is best seen as a short-term corrective measure. The real test will be whether Nigeria can amend the PIA in a way that balances government revenue needs with NNPC’s operational viability and investor confidence.
Blue Economy
HORMUZ IN FLAMES: HOW THE US-IRAN WAR IS CLOSING THE WORLD’S MOST CRITICAL OIL CORRIDOR — AND WHAT IT MEANS FOR NIGERIA
HORMUZ IN FLAMES: HOW THE US-IRAN WAR IS CLOSING THE WORLD’S MOST CRITICAL OIL CORRIDOR — AND WHAT IT MEANS FOR NIGERIA
By Waterways News Correspondent, Okeoghene Onoriobe
The escalating military conflict in the Middle East has sent shockwaves through global shipping, with the Strait of Hormuz — the narrow waterway through which nearly a fifth of the world’s oil supply passes — now effectively off-limits to commercial vessels.
Following joint U.S.-Israeli strikes on Iran over the weekend, the world’s biggest container lines have suspended operations through the strait and are rerouting vessels thousands of kilometres around the Cape of Good Hope. Maersk, Hapag-Lloyd, CMA CGM, and MSC — the four giants that together control the bulk of global container capacity — have all issued emergency advisories pulling their fleets out of the Persian Gulf.
For Nigeria, the consequences are immediate and real. Every tanker carrying crude out of the Gulf, every container ship moving goods into West African ports, and every LNG cargo heading to European buyers now faces longer voyages, higher fuel costs, and inflated freight rates. Nigerian importers — already under pressure from a weakened naira — can expect further cost shocks on goods, machinery, and fuel.
A Choke Point the World Cannot Afford to Lose
The Strait of Hormuz, squeezed between Oman and Iran, is the single most important oil corridor on earth. In 2023, an average of 20.9 million barrels of oil passed through it daily, accounting for roughly 20 percent of global petroleum consumption. Alongside it, the Bab el-Mandeb Strait — the narrow passage connecting the Red Sea to the Gulf of Aden — handled an estimated 12 percent of global seaborne oil trade and eight percent of LNG flows in the same period.
Both waterways are now effectively suspended for major commercial operators.
Maersk confirmed it has halted all vessel crossings through the Strait of Hormuz until further notice, warning that ports in the Persian Gulf, including transshipment hubs Jebel Ali and Khor Fakkan, may face serious delays. The Danish giant has also paused all trans-Suez sailings through the Bab el-Mandeb, rerouting Middle East–India services entirely around the African continent.
“No Real Alternative” — Industry Sounds the Alarm
Peter Sand, chief analyst at global freight benchmarking firm Xeneta, warned that higher container shipping rates must now be factored in across the Middle East region for as long as the conflict continues — adding bluntly that there is “no real alternative” to ocean freight.
“The risk of geopolitics has shown its ugly face with higher frequency and more severity over the past years than ever before,” Sand said. “There is a little bit of fatigue in the industry — you draw 10 contingency plans only to tear them all up because there is a new twist and a new angle to it.”
Energy market analysts say the more pressing threat is not a full closure of the strait — which analysts believe the U.S. and Israel would rapidly neutralise — but the cumulative effect of sporadic attacks on tankers making markets too nervous to operate normally.
“While we are not saying the strait is going to get closed, what the U.S. will not be able to do is control these one-off attacks on tankers,” said Amrita Sen, founder and director of Energy Aspects. “That is enough to make the market extremely cautious about sending vessels in — and that’s what creates the disruptions.”
Nigeria: Caught in the Crossfire
With Nigeria deepening its integration into global maritime trade ahead of the Lagos Blue Economy Investment Summit in March, the timing of this crisis is particularly uncomfortable. Nigerian importers reliant on Persian Gulf transshipment hubs for goods arriving from Asia will be among the first to feel the pinch as rerouting adds days and cost to supply chains.
For a country working to position its ports — Apapa, Tin Can Island, Lekki — as serious players in West African transshipment, the lesson from this crisis is stark: Nigeria’s maritime infrastructure must be resilient enough to adapt when global corridors go dark.
The Ministry of Marine and Blue Economy has not yet issued a formal response to the crisis. Waterways News will continue to monitor developments.
Tags: Strait of Hormuz, Maersk, Nigeria Shipping, Blue Economy, Maritime Security, Persian Gulf, Global Trade
Blue Economy
CAUGHT IN THE CROSSFIRE: How the US-Israel War on Iran Is Shaking Nigeria’s Shipping Sector
CAUGHT IN THE CROSSFIRE: How the US-Israel War on Iran Is Shaking Nigeria’s Shipping Sector
Joint US-Israeli strikes launched on February 28 under Operation Epic Fury — condemned internationally as attacks launched while nuclear negotiations were ongoing — have shuttered the Strait of Hormuz, rerouted the world’s shipping fleets around Africa, and set freight costs on course for a sharp climb. Nigerian importers, exporters, and port operators are now assessing what comes next.
By the Maritime Affairs Desk, waterwaysnews.ng
Lagos | March 3, 2026
The world did not see it coming — or at least, the world had reason to believe it would not. The United States and Israel launched coordinated air strikes on Iran on February 28, 2026, targeting military facilities, nuclear sites and national leadership in what Washington designated Operation Epic Fury. The strikes came, Al Jazeera reported, even as US-Iran nuclear negotiations were ongoing through Omani mediators in Geneva — a fact that drew immediate, sharp condemnation from governments across the globe and left the United Nations Secretary-General António Guterres calling for an immediate cessation of hostilities. For Nigeria’s maritime sector, the diplomatic and legal controversies of how the war began matter less, right now, than its hard economic consequences — consequences that are already materialising at the docks of Apapa, Tin Can Island, and Onne.
The war is now in its third day. Iran’s Islamic Revolutionary Guard Corps (IRGC) has declared the Strait of Hormuz closed, transmitting warnings via VHF radio to vessels in the waterway that no ship is permitted to pass. Though no formal blockade has been declared, the impact has been equivalent to one. Ship-tracking data shows tanker traffic has dropped by approximately 70 percent, with over 150 ships anchored outside the strait. At least five tankers have been damaged. Two crew members have been killed. The world’s largest shipping companies — Maersk, MSC, Hapag-Lloyd, and CMA CGM — have all suspended operations through the waterway and pivoted their fleets toward a longer, costlier alternative: the Cape of Good Hope, around the southern tip of Africa.
That rerouting is not merely a logistical inconvenience. It is a structural shock to global trade — and Nigeria sits squarely in its path.
THE STRIKES THAT STARTED A WAR
Al Jazeera’s reporting on the origins of the conflict is unambiguous in its framing: the US and Israel launched their offensive while nuclear talks were still under way. Omani mediators had announced progress in Geneva negotiations, where Iran had reportedly agreed to zero uranium stockpiling and full verification by the International Atomic Energy Agency (IAEA). Washington’s decision to strike regardless drew Oman’s public dismay, with its foreign minister urging Washington ‘not to get sucked in’ further and calling on the UN Security Council to convene an emergency meeting. The EU urged ‘maximum restraint,’ and the UN’s Guterres stated plainly that the US and Israeli use of force — and Iran’s subsequent retaliatory strikes — ‘undermine international peace and security.’
Iran’s retaliation has been extensive. Since February 28, Tehran has launched waves of missiles and drones at Israeli territory and at US military assets in Bahrain, Kuwait, Qatar, Saudi Arabia, the UAE, and Iraq. The IRGC has attacked 27 bases where US troops are deployed. Iran’s Supreme Leader Ali Khamenei and the head of the IRGC were confirmed killed in the opening strikes. Four US service members have been killed in action. Explosions have been reported in Dubai, Cyprus, and across the wider Gulf region. Qatar — host to the Al Udeid Air Base and one of the world’s largest LNG exporters — has suspended all air navigation and grounded all Qatar Airways flights indefinitely.
FREIGHT COSTS: THE IMMEDIATE BLOW TO NIGERIA
Nigerian shippers are already bracing for significant pain. Aminu Umar, president of the Nigerian Chamber of Shipping, was among the first in the sector to sound the alarm in the hours after the strikes began.
“We are going to see longer days of cargo arrivals, and a very high freight rate coming up from tomorrow. If oil price jumps, which is most likely, there is no way freight will not go up, because bunker prices will also rise.”
— Aminu Umar, President, Nigerian Chamber of Shipping (BusinessDay)
His warning is being confirmed in real time. According to BusinessDay, container rates for cargo into Nigeria are set at $4,600 for a 20-foot dry van container and $5,600 for a 40-foot container from March 10 through at least March 21. These are not the final figures: the Sea Empowerment and Research Center (SEREC), a Nigerian maritime research organisation, has warned that global freight rates could surge by as much as 40 percent. Even more alarming, SEREC has cautioned that marine war-risk insurance could spike by as much as 400 percent in high-risk corridors.
Hapag-Lloyd has already introduced a War Risk Surcharge (WRS) of $1,500 per 20-foot equivalent unit (TEU) on all cargo to and from the Arabian Gulf. CMA CGM has slapped an Emergency Conflict Surcharge of up to $3,000 on 40-foot containers. Hapag-Lloyd has gone further, suspending all bookings from African countries — including Nigeria — to the Upper Gulf region, covering the UAE, Iraq, Kuwait, Qatar, and parts of Saudi Arabia. MSC has suspended all worldwide cargo bookings headed to the Middle East entirely.
For Nigerian exporters — who rely on Gulf ports, particularly Jebel Ali in Dubai, as transshipment hubs to reach Asian markets — the suspension of these bookings is a direct blockage of trade routes, not simply a cost increase. The Upper Gulf region is a vital destination for Nigerian crude oil, LNG, sesame seeds, gold, and various agricultural commodities. With those routes shut, shippers face the choice of either finding alternative transshipment points or absorbing indefinite delays.
“They always take advantage. They charge more. If they charge more, nobody, no shipper has any other alternative but to pay. Naturally, that affects our competitiveness.”
— Nigerian shipper, quoted by BusinessDay
THE SUEZ ROUTE AND THE CAPE DETOUR
The core logistical problem for Nigerian shippers is the collapse of the Suez Canal-Red Sea route. This corridor — the fastest sea link between West Africa and Asia — typically takes 30 to 35 days. The alternative, rerouting around Africa’s Cape of Good Hope, adds roughly two additional weeks to transit time, while burning millions of dollars in additional fuel per vessel.
Nigeria was doubly exposed because the conflict arrived just as the industry had appeared to stabilise. Just days before the US-Israeli strikes, CMA CGM had announced plans to resume full Suez Canal operations in the second quarter of 2026 — itself a recovery from the 2023–2025 Red Sea disruptions caused by Iran-backed Houthi attacks on shipping. The outbreak of this new, larger conflict immediately reversed that plan. Xeneta chief analyst Peter Sand said the war has ‘shattered hopes of a large-scale return of container shipping to the Red Sea in 2026,’ with any plans for a phased return now shelved.
The absorption effect of Cape rerouting further compounds the problem. Xeneta estimates that the longer voyage distances required by the Cape of Good Hope route will absorb approximately 2.5 million TEU of global shipping capacity — as each vessel completes fewer annual round trips over longer distances. This structural capacity squeeze means elevated freight rates are likely to persist well beyond any eventual ceasefire or diplomatic de-escalation.
THE LNG DISRUPTION AND NIGERIA’S EXPORT OPPORTUNITY
Qatar, the world’s largest LNG producer, has been forced to pause LNG production at its Ras Laffan and Mesaieed industrial facilities following Iranian missile strikes. Qatar’s civil aviation authority has suspended all air navigation, Qatar Airways has grounded flights, and public Ramadan gatherings have been suspended. Rachel Ziemba, a senior adjunct fellow at the Center for a New American Security, told Al Jazeera: ‘There has definitely been an escalation overnight, with pressure on energy infrastructure in the Gulf and Qatar pre-emptively pausing LNG production.’
For Nigeria LNG Limited (NLNG), operating from Bonny Island in Rivers State, this disruption to the world’s largest LNG supplier creates a potential market opening. With Qatari volumes offline and Atlantic basin buyers — particularly European utilities — scrambling for alternative cargoes, Nigerian LNG may command premium spot prices in the coming weeks. The Strait of Hormuz, through which one-fifth of the world’s LNG supply ordinarily flows, is now effectively closed to commercial shipping. That volume has to come from somewhere else.
Nigeria’s position as an oil producer also brings a mixed set of consequences. Brent crude has risen by 10 to 13 percent since the outbreak of the conflict, with analysts at Barclays and Goldman Sachs forecasting potential rises toward $100 per barrel or beyond if the disruption persists. Higher crude prices would increase revenue for NNPCL and independent oil producers — but the same price spike that boosts upstream revenues will also feed through into higher costs for refined petroleum products, which Nigeria continues to import.
THE INTERNATIONAL LAW DIMENSION
Al Jazeera’s coverage has consistently framed this conflict not merely as a geopolitical crisis, but as a question of international legality. The US and Israel struck Iran while nuclear negotiations were at an advanced stage — a context that leading international legal scholars have described as a fundamental challenge to the UN Charter’s prohibition on the use of force except in self-defence or with Security Council authorisation. Lebanon’s Hezbollah described the attacks as a ‘blatant violation of international law and the United Nations Charter.’ The International Committee of the Red Cross president, Mirjana Spoljaric, warned of ‘a dangerous chain reaction of military escalation with potentially devastating consequences for civilians.’
These are not merely abstract ethical concerns for Nigeria’s maritime community. The legal status of the conflict shapes the political durability of any ceasefire, the willingness of Gulf states to host diplomatic talks, and the credibility of any eventual reconstruction of Gulf shipping corridors. A war initiated in breach of international law — and one in which a mediating state, Oman, publicly expressed dismay — is a war whose political resolution faces higher diplomatic obstacles.
WHAT PORT OPERATORS AND SHIPPERS MUST DO NOW
The Nigerian Ports Authority (NPA) and the Nigeria Shippers Council (NSC) face immediate operational questions. With Jebel Ali Port in the UAE — one of the world’s busiest transshipment hubs — having experienced a temporary suspension and remaining under uncertainty, cargo originally destined for onward movement through the Gulf will need to find alternative routing. Port operators at Apapa and Tin Can Island should assess their capacity to handle increased vessel calls should Cape of Good Hope rerouting bring more Atlantic traffic past Nigeria’s coastline.
For shippers, logistics firm Flexport has advised businesses to ‘prepare for longer lead times, tight capacity, elevated rates, and continued volatility across both ocean and air networks.’ DSV, the freight forwarder, has recommended that customers share updated shipment forecasts immediately, confirm bookings early to secure space, factor congestion into safety stock assessments, and consider alternatives where feasible. Businesses relying on air freight through Gulf hubs will find that option equally disrupted: FedEx has suspended flights to and from Bahrain, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, the UAE and Saudi Arabia.
| KEY IMPACTS ON NIGERIAN SHIPPING — AT A GLANCE | |
| Freight rates | Container rates to/from Nigeria rising; 20ft containers at $4,600, 40ft at $5,600 from March 10. Industry warns of up to 40% surge. |
| War-risk insurance | SEREC warns premiums in high-risk corridors could spike by 400%. Hapag-Lloyd WRS: $1,500 per TEU. |
| Booking suspensions | Hapag-Lloyd has suspended all Nigeria-to-Gulf bookings. MSC has halted global bookings to the Middle East. |
| Transit time | Cape of Good Hope rerouting adds ~2 weeks to Asia-Nigeria journeys vs the Suez Canal route. |
| Capacity squeeze | Xeneta: Cape rerouting absorbs ~2.5 million TEU of global shipping capacity. |
| LNG exports | Qatari LNG production halted; NLNG may see improved spot pricing opportunities. |
| Oil revenue | Brent crude up 10–13%; potential upside for NNPCL if prices sustain toward $100/bbl. |
| Air freight | Gulf hubs disrupted; FedEx has suspended flights across the Middle East region. |
LEKKI COASTAL ROAD: UMAHI PLEDGES TO CLEAR SWAMP CORRIDORS BLOCKING PORT EVACUATION ROUTES
Minister inspects 7th Axial Road project, sets April deadline for contractor
By Oghenewoke Onoriode | Waterways News Correspondent, Lagos
Minister of Works Engr. Dave Umahi has pledged to unlock waterlogged and swampy corridors along the Dangote Refinery route that are hampering cargo evacuation from the Lekki Deep Sea Port, following a hands-on inspection of the ongoing Lekki 7th Axial Road project in Lagos.
The Minister’s visit to the Lekki Corridor underscored the federal government’s recognition of the road as a critical last-mile link for maritime and port logistics — one that, when completed, will ease pressure on existing access roads and strengthen cargo movement from one of Nigeria’s most strategically significant port facilities.
The 7th Axial Road runs behind the Dangote Refinery and connects the Lekki industrial axis to the Sagamu corridor, making it a linchpin for port operations, industrial logistics and national freight movement. It forms part of a wider coastal infrastructure cluster that includes the Coastal Road, Dangote Road and the Lekki Deep Sea Port itself.
Expressing confidence in the project timeline, Umahi directed that roadbed filling works for Project Lot One must be completed by end of April, instructing the project team to ramp up the deployment of manpower, equipment and materials to meet the deadline.
He noted that the 7th Axial Road is designed to complement the broader Lekki corridor infrastructure, with the combined effect of reducing port congestion, improving cargo throughput and positioning the area as a major transportation and industrial hub for Lagos and the wider national economy.
The Minister also stressed the importance of environmental compliance, directing relevant agencies to ensure that construction proceeds without compromising ecological protection in the coastal zone — a concern of particular relevance given the road’s proximity to sensitive swamp and wetland terrain.
The project is being handled by China Harbour Engineering Company Limited (CHEC), the same firm that delivered the Lekki Deep Sea Port. A company representative assured the Minister that resources on site have been scaled up,
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with attention to safety, quality control and environmental standards.
Umahi cited CHEC’s track record on both the Lekki port and the Makurdi–Enugu road reconstruction as grounds for confidence in the firm’s ability to deliver.
