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Russia-Ukraine war: Fuel scarcity may continue, More vessels avoid Black, Mediterranean seas over attacks
The ongoing war between Russia and Ukraine may further prolong the over three-week scarcity of Premium Motor Spirit, popularly called petrol, in Nigeria, as bulk of the refined products coming into the country from the warring region and its adjoining areas are likely to face some delays.
It was also gathered on Sunday that traders who supply Nigeria with refined petroleum products might pause a little due to the deficit in the supply of crude oil cargoes from the Nigerian National Petroleum Company Limited.
NNPC brings in refined petrol into Nigeria using contractors or traders through its Direct Sale Direct Purchase scheme.
Under the scheme, the oil company provides crude oil to its trading partners, who in turn supply the NNPC with refined products worth the volume of crude received from the national oil company.
But impeccable sources both at the oil firm and among traders stated on Sunday that Nigeria through the NNPC had a deficit of about 17 cargoes in its DSDP obligation due to low oil production.
This, they said, could further prolong the fuel scarcity situation being faced nationwide, except something drastic such as the complete deregulation of the downstream oil sector was implemented.
They also noted that the Russia-Ukraine war might worsen the petrol supply situation in Nigeria as products could be hindered from leaving refineries in the region on schedule.
Nigeria imports its refined petroleum products, as its refineries are currently dormant.
“What we face now could be described as a perfect storm, which is when many things go wrong at the same time. We have a fundamental problem, but that problem happens at a time that other things happened and so it aggravates everything,” an oil trader with the NNPC, who pleaded not to be named due to the sensitive nature of the matter, stated.
The source added, “Now, Russia has attacked Ukraine. What is the impact of Russia’s attack of Ukraine on Nigeria? Russia is an oil-producing country, for Ukraine, our refined products come from that part of the world, not only Western Europe.
“So, the price has gone up because our refined products come from that part of the world and disturbances such as the one happening there will impact supply one way or the other.”
On concerns around DSDP and how it would further prolong petrol scarcity, another trader stated the continued theft of crude oil had impeded NNPC’s ability to settle its crude oil supply obligations to traders on schedule.
The source said, “Nigeria is assigned about 1.7 million barrels of crude oil production per day by OPEC, but its production is between 1.3 and 1.4 million barrels daily. But that is a different thing. Now, from the about 1.3 million barrels that the country produces daily, people are stealing from it.
“They are creating holes in pipelines and the ones that they steal are used in illegal refineries in Rivers State, causing soothe and dirt in peoples’ lungs. The other ones that they steal, they put in batches and go to the high sea to sell them.
The source added, “Now the NNPC brings in products through Direct Sale Direct Purchase of crude. Now I’m telling you that the NNPC owes traders crude oil under the DSDP scheme and you know why? It owes crude oil because people are stealing the crude and they don’t have enough crude to pay.
“So the NNPC owes the traders who bring them refined products. So when they (NNPC) say give me some more, the traders will reply by saying, but you are already owing, pay us. The NNPC cannot pay because people are stealing crude.
“This tells you that the petrol scarcity problems may continue if something drastic, particularly the deregulation of the downstream sector, is not done as soon as possible.”
When contacted, the spokesperson of NNPC, Garba-Deen Muhammad, asked our correspondent to send him a text or WhatsApp message on the matter. This was sent to him but he had yet to reply the messages up till the time of filing this report.
Tanker vessels’ freight rate, insurance premium rise
Meanwhile, the cost of shipping crude oil on super-sized tankers from the United States Gulf Coast to the United Kingdom and Asia surged after attacks on vessels in the Black Sea unleashed a risk-based premium into global shipping markets.
According to Bloombergquint.com report, tanker rates for so-called Very Large Crude Carriers that can carry about two million barrels of crude from the US Gulf Coast to the Asian market jumped to about $7m on Friday from $4.4m just three days ago, according to two shipbrokers familiar with the trades.
They also said that rates for booking vessels that carry oil to the European market rose to more than $2.75m from about $1.6m they said.
The higher costs may threaten US oil exports even as Brent crude’s premium to US oil futures is the biggest it has been since the early days of the pandemic.
Shipowners were already avoiding offering their vessels to collect crude from Russia while at least three merchant ships have been reportedly hit since Russian forces began the attack on its neighbour this last week.
Insurers are either not offering to cover vessels sailing into the Black Sea or they are demanding huge premiums to do so.
Meanwhile, fresh indications have emerged that the development has extended to the African market including Nigeria.
A former President of the Nigerian Indigenous Ship-Owners Association, Aminu Umar, confirmed it was now difficult for ships to sail through the Russia-Ukraine region and its adjoining areas due to the escalating tensions, noting that the area had since been classified as a war zone.
According to him, the situation may lead to a shortage of vessels as more ships avoid the regions.
“Some steel imports come from the Black Sea. Due to insecurity and war in Ukraine which you know is in the Black Sea, it is going to be difficult for ships to go there. The insurance world has classified the area as a war zone. So, many ships cannot go there anymore. No ship is allowed to go there until things are cleared, unless the owner of the vessel decides to take the risk directly, going without following advice from his insurance firm.”
As a result of the development, the expert said the situation had led to a major increase in freight rate.
Also, he said insurance premiums had gone up.
Umar said, “There may be a shortage in the number of vessels going to the Black Sea to ferry cargoes to Nigeria. Already, freight has skyrocketed in the Black Sea and the Mediterranean Sea. These are places we get cargoes that come to Nigeria. The development is going to affect the shipping world very significantly.
“Again, some vessels are already currently blocked in the Black Sea, they can’t come out. Also, some are going to face embargos and sanctions, which means they can’t trade in cargo. Any shipping company owned by a Russian or flying the Russian flag will be involved in this sanction. Consequently, a number of the vessels trading within the Black Sea and the Mediterranean will end not being able to carry cargo either to Europe, America or any of the African countries, because Nigeria is also following the United Nations sanction.”
Specifically, he said the freight rate on tanker vessels had gone up from $10,000 per day to $30, 000 per day, a few days into the war.
He added, “As at yesterday (Saturday) for tankers that are trading within the Mediterranean and Black seas, their freight rate has increased, they were doing like $10,000 per day, and now they are doing like $30, 000 a day. So, it is almost 300 per cent increase in freight and it is still going up. The vessel that will load cargo like steel from the Black Sea will now be facing a very high freight because only a few of the vessels can go there; I am talking about tankers, I have not got an update on the general cargos. Also, When they put you on a war risk zone, it means your insurance premium doubles immediately.
Also, the President, the Nigerian Association of Master Mariners, Tajudeen Alao, noted that crude oil prices had gone over $100 per barrel, adding that the Russia-Ukraine war lead to an increase in insurance and freight.
He listed the challenges as “war risk insurance on freight, increase in commodity prices such as wheat and energy in the European market. The multiplier effect affects export to third world. There will also be the introduction of extra charges. Fewer ship owners and crew will want to go to war zones.”
On his part, a shipping expert, Emmanuel Ilori, said the situation is a wake-up call for Nigeria on the need to be self sufficient, especially in the maritime sector.
“The only thing we can say for Nigeria shipping from this development is the need for Nigeria to be self-sufficient, the need for Nigeria to build its own national fleet and be sufficient in terms of the maritime resources. All of a sudden, sanctions have been imposed on Russia. But Russia is relatively maritime self-sufficient so they will be able to handle it.”
According to him, developing capacity in the maritime sector will reduce the country’s dependency on foreign countries.
“If Nigerian is still dependent on foreign countries for its shipping, any sudden development such as a sanction may throw the country out of balance. How are we going to survive as a nation? That is why we need to be self-sufficient in terms of shipping, technology, and all that. We need to develop our maritime sector in terms of technology and infrastructure,” he noted.
Ilori further advised the country to develop the capacity to train cadets, adding that the Maritime Academy of Nigeria in Oron should be upgraded to train more people.
Leading financial institution, Fidelity Bank Plc, has partnered with the Federal Ministry of Humanitarian Affairs and Poverty Alleviation to provide support to vulnerable households in Abuja through its Food Bank programme.
Launched in April 2023, the Fidelity Food Bank is one of the bank’s flagship Corporate Social Responsibility (CSR) initiatives. The programme seeks to combat hunger and malnutrition by supporting communities affected by food insecurity. Since its introduction, more than 300,000 food packs have been distributed to beneficiaries across Nigeria’s six geopolitical zones.
Speaking at an event held recently in Abuja to commemorate the 2026 International Day for the Eradication of Poverty, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Nneka Onyeali-Ikpe, represented by the bank’s Divisional Head of Public Sector, Richard Madiebo, said the bank’s interventions extended beyond food distribution to entrepreneurship support and other empowerment programmes designed to help individuals and families achieve economic independence.
According to Onyeali-Ikpe, Fidelity Bank’s commitment to community development spans approximately three decades, reflecting its longstanding dedication to improving the wellbeing of its host communities.
“Fidelity Bank has always aligned its CSR programmes with the needs of its host communities. We understand the importance of private sector participation in addressing poverty and promoting inclusive development.
“We have delivered 2,000 food packs to residents of Abuja. There are several other initiatives that the ministry and the bank are discussing, and we will allow the ministry to provide further details at the appropriate time,” she said.
Also speaking at the event, the Minister of Humanitarian Affairs and Poverty Reduction, Bernard M. Doro, commended Fidelity Bank for contributing to efforts to improve the welfare of vulnerable Nigerians. He also called for stronger collaboration between the government and the private sector to address multidimensional poverty.
According to Doro, with 63 per cent of Nigeria’s population living in multidimensional poverty, a significant proportion of citizens remains excluded from economic activity, limiting businesses’ access to potential customers and employees.
“When 63 per cent of the population lives in multidimensional poverty, a substantial number of people are excluded from economic participation. This also means that businesses are unable to reach a large segment of their potential customers.
“Our responsibility as a ministry is to unlock partnerships with the private sector. Such collaboration is critical to expanding economic opportunities and bringing more people into productive economic activities. We are pleased that Fidelity Bank is fully committed to this effort,” Doro stated.
The minister urged stakeholders to move beyond declarations and ensure that poverty reduction initiatives deliver measurable and sustainable improvements in the lives of vulnerable households.
Ranked among the best banks in Nigeria, Fidelity Bank Plc is a full-fledged Commercial Deposit Money Bank serving over 9.1 million customers through digital banking channels, its 255 business offices in Nigeria and United Kingdom subsidiary, FidBank UK Limited.
The Bank is a recipient of multiple local and international awards, including the 2024 Excellence in Digital Transformation & MSME Banking Award by BusinessDay Banks and Financial Institutions (BAFI) Awards; the 2024 Most Innovative Mobile Banking Application award for its Fidelity Mobile App by Global Business Outlook; and the 2024 Most Innovative Investment Banking Service Provider award by Global Brands Magazine. Additionally, the Bank was recognised as the Best Bank for SMEs in Nigeria by the Euromoney Awards for Excellence and as the Export Financing Bank of the Year by the BusinessDay Banks and Financial Institutions (BAFI) Awards.
LAGOS, NIGERIA – Fidelity Bank Plc has successfully redeemed its 5-Year US$400 million Senior Unsecured Notes at maturity, reaffirming its commitment to meeting its obligations to investors and reinforcing its track record in the international debt capital markets.
Issued on 28 October 2021, the 5-year Eurobond matured on 28 October 2026 and carried an annual coupon of 7.625 per cent, payable semi-annually. Fidelity Bank met all scheduled coupon payments throughout the life of the instrument and has now fulfilled its final repayment obligation in full, covering both principal and accrued interest.
The redemption was funded from internally generated liquidity as part of the Bank’s forward-looking liquidity management strategy. Through a dedicated sinking fund, Fidelity Bank progressively provided for the maturing obligation, enabling the Bank to meet its commitment while maintaining business-as-usual operations and compliance with applicable regulatory liquidity requirements.
Commenting on the development, the Managing Director and Chief Executive Officer of Fidelity Bank Plc, Dr/Mrs Nneka Onyeali-Ikpe, said the successful redemption reflected the Bank’s disciplined approach to financial management and its commitment to delivering on its obligations.
“This successful redemption demonstrates the strength of our franchise, the discipline of our balance sheet management and our commitment to honouring our obligations to investors and other stakeholders. We anticipated this maturity from the outset and planned accordingly, which reflects our commitment to responsible financial management,” Onyeali-Ikpe said.
The redemption further strengthens Fidelity Bank’s record in the international debt capital markets. The 2021 issuance marked the Bank’s third Eurobond transaction, following earlier issuances in 2013 and 2017, wherein the Bank raised $300 million and $400 million respectively. The 2021 offer attracted investor orders exceeding US$700 million, reflecting strong demand for the Bank’s international debt offering.
The successful Eurobond redemption follows the completion of Fidelity Bank’s recapitalisation programme ahead of the regulatory deadline. The Bank’s capital-raising efforts increased its eligible regulatory capital to approximately ₦533 billion, exceeding the ₦500 billion minimum capital requirement for banks with international authorisation.
The completion of these milestones underscores Fidelity Bank’s strong capital position, prudent liquidity management and disciplined approach to financial execution. It also reinforces the Bank’s capacity to meet its financial obligations while pursuing its strategic growth objectives across domestic and international markets.
…….GTBank customers can now pay with it and businesses on HabariPay’s Squad gateway can now accept it.
Guaranty Trust Holding Company Plc (“GTCO” or “the Group“) today announced that two of its subsidiaries are live with Google Pay on the day it launches in Nigeria. Customers of Guaranty Trust Bank Limited (“GTBank”) can add their GTBank debit cards to Google Wallet and pay with Google Pay online, in Nigeria and internationally. Businesses that use Squad, the payment gateway run by the Group’s payments subsidiary HabariPay, can now offer Google Pay to their customers at checkout.
The Group is therefore present at both ends of the same transaction: with the person paying and with the business being paid.
For GTBank customers, the change is simple. They add their GTBank debit card to Google Wallet once. After that, they choose Google Pay at checkout, pick the card and confirm, without typing a card number, expiry date or CVV again. Google Pay replaces the card number with a secure digital token, so the merchant does not receive the actual card details. The card can be used wherever Google Pay is accepted online, including for subscriptions, travel bookings, food delivery, bills and digital services.
For businesses on Squad, “Pay with Google Pay” now sits at the top of the Squad checkout, alongside card, bank transfer, USSD, bank payments and Squad’s buy-now-pay-later options. A customer with a card in Google Wallet selects Google Pay, chooses the card, confirms, and is returned to the merchant’s site once the payment is verified. Google Pay is switched on by default for every business on Squad, and a merchant can choose to turn it off. Merchants set up for international payments can accept Google Pay from customers anywhere in the world, which opens Nigerian businesses to buyers abroad, including the diaspora. Fewer fields mean fewer points at which a customer can abandon a purchase, which matters most to the small and growing businesses that make up much of Squad’s merchant base.
Commenting on the launch, the Group Chief Executive Officer of GTCO, Mr Segun Agbaje, said: “Most failed online payments are not refused, they are abandoned. Somewhere along the way the customer gives up, and the business never learns about the sale it lost. As a customer centric Financial Services Group, we are committed to ensuring that we continue to deliver payment solutions that make transacting safe and simple for our various customer Groups. With Google Pay, what matters to us is that we are ready on both sides from the first day: a GTBank customer can pay with it, and a business on Squad can accept it.”
He added: “This is what a group structure is for. Our Bank and our Payments Business were built to do different jobs, and today they meet at the same checkout. We will keep putting the full weight of the Group behind those small moments where people decide whether paying digitally is worth the effort. When it is, everyone in the transaction wins: the customer, the merchant and the wider economy that depends on both.”
The Managing Director of HabariPay, Mr Eduofon Japhet, said: “For a merchant, every extra field at checkout is a reason for a customer to leave. Squad businesses now get Google Pay inside the checkout they already use, so their customers can pay in a few taps with a card they have already saved. A merchant set up for international payments can now be paid with Google Pay by a customer anywhere in the world, with nothing new to integrate.”
Availability. GTBank customers can add an eligible GTBank debit card through the Google Wallet app on Android or through their Google Account. From today, Google Pay is on by default for all businesses on the Squad payment gateway, and merchants can choose to turn it off. Squad merchants set up for international payments can accept Google Pay from anywhere in the world. More information is available at www.gtbank.com and www.squadco.com.
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