Industry

AFC Backs Dangote’s $7 Billion Fertiliser Expansion with $600 Million Facility

by Emmanuel Ebube
written by Emmanuel Ebube

LAGOS, June 15 – Africa Finance Corporation has approved a $600 million financing facility for Dangote Group to support a major fertiliser expansion programme that will significantly increase production capacity in Nigeria and establish a new manufacturing platform in Ethiopia.

According to AFC, the financing will be provided to Greenview Fertilizer Corp., Dangote Group’s fertiliser holding company, as part of a broader investment programme valued at approximately $7 billion.

The expansion is expected to increase urea production capacity in Nigeria from 3 million metric tons to 9 million metric tons annually while adding a further 3 million metric tons of production capacity in Ethiopia.

Once completed, the projects will position the Dangote Group among the largest fertiliser producers globally and further strengthen Africa’s domestic fertiliser manufacturing capacity.

The investment comes at a time when many African countries remain heavily dependent on imported fertilisers, exposing agricultural sectors to global supply chain disruptions, commodity price volatility and geopolitical shocks.

Recent disruptions linked to the Middle East conflict and supply constraints in global fertiliser markets have reinforced concerns about Africa’s dependence on imported agricultural inputs.

AFC President and Chief Executive Officer Samaila Zubairu said the investment aligns with the institution’s objective of strengthening Africa’s industrial and agricultural self-sufficiency.

“By supporting the development of the world’s largest fertiliser platform, AFC is helping build the foundation for Africa to feed itself, create productive jobs and strengthen our economic sovereignty,” Zubairu said.

The Lagos-based infrastructure financier has been a long-standing partner of the Dangote Group and previously played a key role in coordinating a $3 billion syndicated financing package for the 650,000-barrel-per-day Dangote Refinery, Africa’s largest refinery.

In a statement, Dangote Industries said the fertiliser expansion represents a significant step toward improving agricultural productivity and food security across the continent.

The company noted that the investment will help reduce dependence on imported fertilisers, support farmers, strengthen agricultural resilience and create long-term economic opportunities.

“At a time when population growth, climate pressures and global supply chain disruptions continue to challenge food systems worldwide, Africa must build the industrial capacity required to support its own development,” the company said.

Dangote added that the project extends beyond fertiliser manufacturing and forms part of a broader strategy to support sustainable agricultural growth, economic development and greater self-sufficiency across Africa.

The planned investments in Nigeria and Ethiopia are expected to create thousands of jobs, support regional agricultural value chains and enhance the continent’s ability to meet growing food demand.

The project also reflects increasing efforts by African institutions and private-sector investors to build strategic industrial capacity within the continent rather than relying on imported products and external supply chains.

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Economy

Nigeria’s Inflation Climbs to 15.93% in May Amid Persistent Consumer Price Pressures

by Emmanuel Ebube
written by Emmanuel Ebube

LAGOS, June 15 – Nigeria’s headline inflation rate rose slightly in May 2026, highlighting continued price pressures across the economy even as the pace of monthly inflation showed signs of moderation.

According to data released by the National Bureau of Statistics on Monday, annual inflation increased to 15.93% in May from 15.69% recorded in April.

The latest figures indicate that consumer prices continued to rise across the economy, although the pace of inflation remained broadly contained compared to previous periods of elevated price growth.

The Consumer Price Index (CPI), which measures changes in the prices of goods and services, rose to 140.7 points in May from 138.3 points in April, reflecting ongoing increases in household costs.

Despite the rise in annual inflation, the month-on-month inflation rate eased during the period, suggesting that the speed at which prices are increasing may be beginning to slow.

The latest inflation reading was also viewed as less severe than many analysts had anticipated, supporting expectations that price pressures could moderate further in the months ahead.

Market observers note that improving global energy market conditions could provide additional relief.

Recent developments in the Middle East, including an agreement between the United States and Iran to reopen the Strait of Hormuz, have contributed to a decline in global oil prices after months of elevated energy costs.

Lower crude oil prices could help ease transportation, logistics and fuel-related costs across Nigeria’s economy, reducing some of the inflationary pressures that have weighed on consumers and businesses.

The moderation in monthly inflation may also strengthen the case for future monetary policy easing should price stability continue to improve.

The Central Bank of Nigeria has maintained a tight monetary stance in recent years to contain inflation and stabilize the naira, with borrowing costs remaining elevated.

Analysts will now closely monitor future inflation releases to determine whether the recent slowdown in monthly price growth marks the beginning of a more sustained disinflation trend.

While inflation remains above levels considered consistent with long-term price stability, the combination of softer monthly price increases, improved foreign exchange conditions and easing global energy prices could support a more favorable outlook for inflation during the second half of the year.

For policymakers, the challenge remains balancing efforts to sustain economic growth while ensuring that inflation continues moving toward more manageable levels.

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Energy

Libya’s NOC Signs Production-Sharing Agreements with Eni, QatarEnergy and Repsol

by Emmanuel Ebube
written by Emmanuel Ebube

TRIPOLI, June 15 – Libya’s National Oil Corporation (NOC) has signed a series of production-sharing agreements with major international energy companies following its first oil and gas licensing round in nearly two decades, marking a significant step in efforts to expand exploration and increase crude production.

According to Massoud Suleman, Chairman of the National Oil Corporation (NOC), the agreements were concluded between Libya’s National Oil Corporation and a number of global energy firms that secured exploration acreage during the country’s 2025 bid round.

The deals include partnerships with Repsol, Türkiye Petrolleri, Eni and QatarEnergy. A separate consortium involving MOL Group, Türkiye Petrolleri and Repsol also signed exploration agreements.

The agreements follow Libya’s 2025 licensing round, the first such exercise since 2007, through which the country awarded new exploration blocks to international investors as it seeks to revitalize its hydrocarbons sector.

Libya, a member of Organization of the Petroleum Exporting Countries, is aiming to increase oil production capacity to 2 million barrels per day, up from current output of approximately 1.4 million barrels per day.

Suleman said the agreements demonstrate growing international confidence in Libya’s energy sector despite the country’s ongoing political divisions and governance challenges.

He noted that the new partnerships are expected to support increased exploration activity, accelerate field development and contribute to long-term production growth.

The February licensing round attracted strong interest from international energy companies, with exploration blocks awarded to firms including Chevron, Eni, QatarEnergy and Repsol.

The renewed investment comes as Libya seeks to leverage its vast oil and gas reserves to strengthen economic growth, increase export revenues and restore its position as one of Africa’s leading hydrocarbon producers.

Industry observers view the agreements as an important milestone for the country’s energy sector, signaling that international investors remain willing to commit capital to Libya’s upstream industry despite persistent political uncertainty between rival administrations in the country’s eastern and western regions.

If successfully implemented, the projects could help unlock new reserves, increase production capacity and strengthen Libya’s role in global energy markets over the coming years.

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Finance

Afreximbank Cancels Annual Meeting in Egypt Amid Rising Ebola Cases in Central Africa

by Emmanuel Ebube
written by Emmanuel Ebube

CAIRO, June 15 – The African Export-Import Bank has cancelled its annual meeting scheduled to take place next week in El Alamein, Egypt, citing public health concerns linked to the worsening Ebola outbreak in Central Africa.

According to a Reuters report, citing a statement seen by Reuters on Monday, shareholder business that was expected to be conducted during the gathering will now be handled through ”correspondence” rather than in-person meetings.

The Cairo-based trade finance institution said the decision was taken in coordination with measures adopted by the Egyptian government and the African Union following a rise in Ebola infections across the region.

The move comes as the Democratic Republic of the Congo continues to battle a growing Ebola outbreak. Authorities have reported 782 confirmed cases since the outbreak was declared a month ago, raising concerns about cross-border travel and the safety of large international gatherings. Cases have also been reported in Uganda.

In a statement, Afreximbank said the cancellation was based on precautionary measures aimed at protecting public health and ensuring the safety of participants.

“These decisions were taken on public health and safety grounds in light of the evolving health situation in parts of the continent,” the bank said.

The lender added that Egyptian authorities had similarly postponed several other international events scheduled for this month as part of broader efforts to limit potential health risks.

Afreximbank is owned by African governments, regional financial institutions and private investors, and its annual meetings typically attract policymakers, central bankers, development finance institutions and private sector leaders from across the continent and beyond.

The decision highlights the growing impact of the outbreak on regional travel and business activities. While the African Development Bank proceeded with its annual meetings in Brazzaville, Republic of Congo, last month shortly after the outbreak was declared in neighbouring DRC, concerns have intensified as case numbers continue to rise.

The cancellation underscores the potential economic and operational disruptions that health emergencies can pose to major continental institutions and international events across Africa.

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Infrastructure

Lobito Atlantic Railway Resumes DRC Copper Shipments After Flood Damage Repairs

by Emmanuel Ebube
written by Emmanuel Ebube

LUANDA, June 15 – Lobito Atlantic Railway has resumed copper shipments from the Democratic Republic of the Congo following the reopening of a flood-damaged section of the Lobito Corridor, restoring a critical export route for the region’s mining sector.

The railway operator announced that its first copper cargo has successfully crossed the repaired section after emergency works restored connectivity between the Atlantic port of Lobito and the city of Huambo in central Angola.

The route had been closed for nearly two months after severe flooding damaged key infrastructure along the corridor, disrupting the movement of minerals from Central Africa to international markets.

According to the company, emergency repair works have now restored full rail operations, allowing copper exports from the Democratic Republic of Congo to resume through one of Africa’s most strategically important transport corridors.

The Lobito Corridor has become increasingly important as mining companies seek alternative export routes to reduce dependence on longer and more congested pathways through southern and eastern Africa.

The rail link connects the mineral-rich copper belt of the Democratic Republic of Congo and Zambia to Angola’s Atlantic coastline, providing a shorter route for shipments destined for Europe, North America and other international markets.

The restoration of operations is expected to ease logistical bottlenecks for copper producers and traders at a time when global demand for critical minerals remains strong, driven by investments in electrification, renewable energy and battery manufacturing.

The reopening also supports broader efforts by regional governments and international investors to strengthen infrastructure along the Lobito Corridor, which has emerged as a strategic trade route for transporting copper, cobalt and other critical minerals from Central Africa to global markets.

With traffic now restored, railway operators expect freight volumes to gradually normalize as mining companies resume exports that had been delayed by the disruption.

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Finance

World Bank Backs Morocco with $650 Million for Digital Economy and Climate Risk Programs

by Emmanuel Ebube
written by Emmanuel Ebube

RABAT, June 15 – The World Bank’s Board of Directors has approved two financing programs worth a combined $650 million to support Morocco’s digital transformation agenda and strengthen the country’s resilience to climate, disaster and cyber-related risks.

The financing package includes a $250 million Digital Transformation Acceleration Program and a $400 million Climate & Risk Finance Program, both designed to advance Morocco’s long-term economic modernization strategy while mobilizing greater private-sector participation.

The first initiative, valued at $250 million, will support the implementation of Morocco’s Digital Morocco 2030 strategy, which aims to accelerate the delivery of digital public services, strengthen innovation and expand opportunities within the country’s technology ecosystem.

The program will support the deployment of user-centered digital government services for citizens and businesses, facilitate the migration of public institutions to cloud-based systems and expand financing opportunities for startups and small businesses.

It will also promote artificial intelligence innovation, support the digital transformation of micro, small and medium-sized enterprises, strengthen Morocco’s digital talent pipeline and create new employment opportunities in the country’s growing offshoring sector.

A key component of the strategy is the development of a National Sovereign Wallet linked to Morocco’s national identity system.

The platform will allow citizens to securely store, access and share official documents digitally, reducing administrative burdens and improving access to government services.

Authorities also plan to expand end-to-end digital service delivery through a unified national portal designed to reduce reliance on physical administrative procedures.

The World Bank estimates that the program could mobilize nearly $200 million in additional private investment through government-backed risk-sharing mechanisms supporting startup financing and MSME digitalization.

Special emphasis will be placed on increasing participation by women and young people in the digital economy, with measurable targets extending through 2031.

The second initiative, the $400 million Morocco Climate & Risk Finance Program, is aimed at strengthening the country’s financial resilience against climate-related shocks, natural disasters and cyber threats.

The program will support the development of disaster risk financing tools, cyber insurance products and digital payment infrastructure capable of accelerating financial assistance following major emergencies.

It will also strengthen the capacity of financial regulators to oversee climate and cyber risks affecting banks, insurers and other financial institutions.

To attract greater private-sector investment into climate-related infrastructure, the initiative will establish a dedicated Project Preparation Facility focused on developing commercially viable projects in renewable energy, energy efficiency, sustainable transport and water infrastructure.

Blended finance mechanisms and capital market instruments will also be used to channel private capital toward climate-aligned investments.

Over the next five years, the program aims to mobilize up to $400 million in private investment, establish approximately $1 billion in pre-arranged disaster financing and extend cyber risk coverage to at least 20 financial institutions.

According to Ahmadou Moustapha Ndiaye, the initiatives align closely with Morocco’s long-term development priorities.

“These two new programs address critical pillars of Morocco’s transformation priorities, a digitally empowered economy, a vibrant innovation ecosystem and a financially resilient nation equipped to manage climate, disaster and cyber risks,” Ndiaye said.

The approvals add to a growing portfolio of World Bank-supported projects in Morocco focused on digital governance, climate adaptation, financial sector development and private capital mobilization.

Together, the two programs are expected to strengthen Morocco’s competitiveness, support job creation, attract new investment and reinforce the country’s resilience in an increasingly digital and climate-sensitive global economy.

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Energy

Egypt Accelerates Renewable Energy Push with New Grid and Storage Investments

by Emmanuel Ebube
written by Emmanuel Ebube

CAIRO, June 15 – Egypt is stepping up efforts to transform its energy sector after President Abdel Fattah El-Sisi directed the government to expand energy storage systems, strengthen electricity infrastructure and accelerate the integration of renewable energy into the national grid.

The directives were issued during a meeting on Sunday with Prime Minister Mostafa Madbouly and Minister of Electricity and Renewable Energy Mahmoud Esmat, where officials reviewed progress on grid modernization and renewable energy projects.

The discussions focused on the second phase of Egypt’s national electricity grid enhancement programme, which comprises approximately 105 projects designed to improve transmission capacity, network reliability and power distribution efficiency.

Officials also reviewed plans to connect additional solar and wind energy projects to the national grid by 2027 as part of Egypt’s broader clean energy strategy.

El-Sisi emphasized the importance of improving electricity supply quality, enhancing the efficiency of conventional fuel use and maintaining the stability of the national grid while the country expands renewable energy generation.

The president also instructed authorities to adhere to implementation timelines and accelerate the connection of new projects to support Egypt’s energy transition and sustainable development objectives.

A key component of the strategy is the expansion of energy storage infrastructure.

The government is targeting a renewable energy share of 45% in Egypt’s electricity mix within the next two years, supported by a combination of utility-scale renewable projects and battery energy storage systems.

According to officials, the first phase of the Obelisk Solar Power Plant has already been commissioned, delivering 500 megawatts of generation capacity alongside a 200 megawatt-hour battery storage facility connected to the national grid.

The second phase of the project, which will add another 500 megawatts of solar generation capacity, is expected to come online in the coming weeks as Egypt prepares to meet rising electricity demand during the summer period.

El-Sisi called for continuous monitoring of renewable energy projects throughout both construction and operational stages and urged stronger cooperation between government institutions and private-sector partners involved in delivering clean energy investments.

The president also highlighted the importance of expanding local-currency financing mechanisms for renewable energy and storage projects to support long-term sector development.

The meeting further reviewed progress on the ambitious Energy Valley project in Minya Governorate, which is expected to become one of the world’s largest integrated clean energy developments.

The project is planned to include 1.7 gigawatts of solar photovoltaic generation capacity supported by battery storage systems totaling 4 gigawatt-hours, with facilities distributed across Minya, Qena and Alexandria governorates.

Egyptian authorities view large-scale storage investments as essential to maximizing the value of renewable energy generation, improving grid flexibility and ensuring system stability as more intermittent energy sources come online.

El-Sisi also underscored the strategic importance of localizing renewable energy manufacturing industries, describing domestic production of clean energy technologies as a critical component of Egypt’s energy security agenda.

The government believes expanding renewable energy capacity, strengthening storage infrastructure and reducing carbon emissions will play a central role in supporting economic growth, improving energy resilience and advancing Egypt’s long-term green transition goals.

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Telecommunications

IMF Recommends Telecom Excise, VAT on Fuel to Boost Nigeria’s Revenue

by Oluebube Elechi
written by Oluebube Elechi

ABUJA, June 15 – The International Monetary Fund (IMF) has advised Nigeria to consider new tax measures, including excise duties on telecommunications services and the extension of Value Added Tax (VAT) to fuel products, as part of efforts to strengthen government revenue.

The recommendation was contained in the Fund’s latest Article IV consultation report on Nigeria, which noted that the country’s fiscal needs may outpace current revenue growth despite ongoing tax reforms.

According to the IMF, the implementation of Nigeria’s newly signed tax laws should gradually improve revenue collection. However, it said additional measures may still be needed over the medium term to create enough room for development spending and social programmes.

The Fund suggested options such as increasing the VAT rate, extending VAT to fuel products, reviewing certain tax exemptions and customs duty waivers, and reintroducing excise duties on telecom services.

At the same time, it cautioned that any new tax measures should be introduced carefully, given rising poverty levels and food insecurity across the country. It recommended that authorities put in place an effective and adequately funded cash transfer system before implementing policies that could increase living costs for vulnerable households.

The IMF also encouraged Nigeria to deepen the use of digital technology in tax administration to improve collection, reduce leakages and address corruption risks. It said the institution would continue supporting the country through technical assistance on tax and customs reforms.

Nigeria had previously scrapped a proposed five per cent excise duty on telecommunications services in 2024 after concerns from operators over the burden on businesses and consumers. Industry players had argued that the sector was already contending with multiple taxes, including the 7.5 per cent VAT and mandatory regulatory contributions.

The IMF estimated that Nigeria’s economy expanded by four per cent in 2025 and projected growth of 4.1 per cent in 2026, although inflation, rising transport costs and higher food prices remain key pressures on households and businesses.

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Public Finance

Nigeria’s Foreign VAT Revenue Jumps 83% as Digital Tax Reforms Boost Collections

by Emmanuel Ebube
written by Emmanuel Ebube

LAGOS, June 15 – Nigeria’s foreign Value Added Tax (VAT) collections rose sharply in the first quarter of 2026, reflecting the growing size of the country’s digital economy and improved compliance by foreign companies providing services to Nigerian consumers.

According to Data released by the National Bureau of Statistics showed that foreign VAT revenue reached N830.47 billion ($610.39 million) during the quarter, representing an 83% increase from the N454.76 billion (approximately $331.97 million) recorded in the same period of 2025.

The performance marks the highest quarterly foreign VAT collection recorded in recent years and underscores the increasing importance of digital transactions and imported services as sources of non-oil government revenue.

Foreign VAT collections have maintained a consistent upward trajectory over the past five quarters, supported by regulatory reforms and stronger tax enforcement measures.

The growth comes amid the implementation of Nigeria’s 2025 Tax Act, which significantly expanded the country’s digital taxation framework and strengthened rules governing cross-border transactions.

Under the legislation, non-resident companies supplying taxable goods and services to Nigerian customers are required to register for tax purposes and charge VAT on eligible transactions.

The law also broadened the scope of taxable activities, covering imported goods and services, digital transactions, rights and assets exercised within Nigeria, as well as certain non-monetary transactions such as barter arrangements and supplies between related parties.

Fiscal authorities have simultaneously strengthened enforcement mechanisms across digital payment channels, helping to improve compliance among foreign service providers operating in the Nigerian market.

As a result, many cross-border digital payments now attract VAT deductions, while compliance requirements have been extended to electronic financial services, banking platforms and fintech operators.

The increase in foreign VAT revenue forms part of Nigeria’s broader strategy to diversify government income away from oil dependence and improve domestic revenue mobilisation.

Authorities have intensified efforts to modernise tax administration through the use of technology and enhanced taxpayer identification systems.

In a further move to strengthen compliance, the Nigeria Revenue Service and the Joint Revenue Board recently announced plans to implement a new Taxpayer Identification (Tax ID) framework that will replace the existing TIN Validation API.

Officials expect the initiative to improve taxpayer verification, strengthen compliance monitoring and enhance the efficiency of tax administration across the country.

The rise in foreign VAT collections also contributed to stronger overall VAT performance.

Total VAT revenue generated in Nigeria increased to N2.42 trillion in the first quarter of 2026, up 17.06% from N2.07 trillion recorded during the same period last year.

The figures highlight the growing role of digital taxation and cross-border commerce in supporting Nigeria’s fiscal position as the government seeks to expand its non-oil revenue base and strengthen public finances.

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Energy

Nigeria’s Domestic Gas Sales Climb 30% as Sector Reforms Gain Ground

by Oluebube Elechi
written by Oluebube Elechi

ABUJA, June 15 – Nigeria’s domestic gas market expanded by nearly 30 per cent between January 2022 and January 2025, with recent reforms helping to improve supply, attract investment and strengthen confidence across the sector, according to a new legal analysis.

The report showed that domestic gas sales increased from 49.3 billion standard cubic feet (bscf) in January 2022 to 64.2bscf by January 2025, reflecting the impact of reforms introduced under the Petroleum Industry Act (PIA) 2021 and subsequent executive orders issued by President Bola Tinubu.

Nigeria holds more than 206 trillion cubic feet of proven gas reserves but has historically struggled to translate that resource advantage into reliable domestic energy supply due to weak infrastructure, underinvestment and persistent gas flaring.

In its report, titled From Policy to Practice: Legal and Regulatory Drivers of Nigeria’s Domestic Gas Market Under the PIA and Recent Executive Orders, the Lagos-based law firm said the PIA had reshaped the regulatory landscape by creating separate oversight bodies for upstream and midstream operations, helping to reduce bottlenecks and improve clarity for investors.

The analysis also pointed to the Domestic Gas Delivery Obligation framework as a major driver of supply to critical sectors, including power generation and industry, backed by penalties for companies that fail to meet their commitments.

In addition, the report highlighted open-access infrastructure rules, partial gas pricing liberalisation and the Midstream and Downstream Gas Infrastructure Fund as measures designed to support investments in processing, transportation and distribution.

However, it noted that significant hurdles remain. Infrastructure gaps, payment challenges within the power sector, legacy debts and implementation delays continue to slow progress.

According to the firm, while the foundation for growth has been laid, sustained investment and consistent execution will be needed to unlock the full potential of Nigeria’s Decade of Gas ambitions.

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