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Acquisition Approval Delays: The Wrong Look for Nigeria (By NJ Ayuk)

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NJ Ayuk

There is a crying need for a new level of efficiency, timeliness, and openness in the approval process to give a fair shake to domestic energy players

CAPE TOWN, South Africa, July 30, 2024/APO Group/ — 

By NJ Ayuk, Executive Chairman, African Energy Chamber (https://EnergyChamber.org).

The Nigerian government needs to step up its game regarding approvals for indigenous companies acquiring in-country foreign energy assets.

The negative consequences of approval delays, ranging from many months to two-plus years, include forfeited revenue from lost royalties and taxes, production shortfalls, investor discouragement, and safety issues that arise while maintenance is put on hold.

The government approval process has stymied several of these potential deals over the past couple of years. These puzzling delays raise questions about why they are happening, as well as how serious officials are about increasing energy production to help Nigeria’s economy and its people.

There is a crying need for a new level of efficiency, timeliness, and openness in the approval process to give a fair shake to domestic energy players. Without it, the country’s economy and its citizens have the most to lose. The government can and must do better than this to keep its oil industry competitive, profitable, and safe.

Chappal Energies: Unlocking Latent Resources

In July 2024 TotalEnergies EP Nigeria sold to Chappal Energies its 10% interest in the SPDC JV licenses in Nigeria for 860 million USD. These assets produce a lot of beautiful low carbon from gas from OML 23, OML 28 and OML 77.

In late 2023, Norway’s state-owned Equinor agreed to sell its Nigerian business, Nigeria Energy Company (ENEC), to Nigerian homegrown firm, Chappal Energies. The sale includes the unitized 20.21% interest Chevron operates in the country’s deepwater Agbami oil field, which has produced over 1 billion barrels of oil for Equinor since 1992.

Equinor has said it expects Chappal Energies will continue development of its long-held assets in Nigeria, to the betterment of the country’s economy. Chappal is optimistic, too, with its managing director, Ufoma Immanuel, expecting positive effects on both the environment and the community.

Chappal has just the sort of attitude and drive Nigeria needs in its indigenous petroleum businesses, having stated that it is intent on “unlocking latent value in Nigeria’s and Africa’s oil and gas resources.”

The sale can only close after specified conditions and all regulatory and contractual approvals are finished. These are still pending.

Oando: Doubling its State Partnership Stake

In the early fall of 2023, in line with the Eni 2023-2026 Plan, Italian supermajor Eni agreed to sell Nigerian Agip Oil Company Ltd (NAOC) to Oando, a Nigerian stock exchange-listed provider of energy solutions.

Eni’s plan includes an effort to divest itself of resources that offer value and opportunity to other owners.

NAOC concentrates on producing onshore Nigerian oil and gas and on generating power. Its Nigerian holdings include interests in four onshore blocks, two power plants, and two onshore exploration leases. Besides these assets in the Niger River Delta, the deal includes an interest in the Brass River oil terminal.

Overall, the agreement means that Oando can double its interest in NAOC JV, the partnership it has with the state, to 40%, and increase its reserves to over 1 billion barrels of oil equivalent (boe).

Oando’s CEO, Wale Tinubu, sees the purchase as being “in alignment” with his company’s strategy of “acquiring, enhancing, appraising, and efficiently developing reserves.”

Closing the sale depends on authorization of all the relevant local and regulatory authorities — a process that is still ongoing nearly a year after the agreement was reached. There has been some talk of a approvals set to happen soon.

Renaissance: Making a Large Onshore Investment

In January 2024, Shell agreed to sell Shell Petroleum Development Co. of Nigeria Limited (SPDC), its Nigerian onshore subsidiary, to Renaissance, an association made up of five Nigerian exploration and production companies (ND Western Limited, Aradel Holdings Plc, FIRST Exploration and Petroleum Development Company Limited, and The Waltersmith Group) plus an international energy group (Petrolin Limited). The firms agreed to a sales price of USD 1.3 billion.

The government can and must do better than this to keep its oil industry competitive, profitable, and safe

All of SPDC’s operating capabilities and staff are to be maintained in the transaction, including technical expertise, management systems, and processes.

Describing Renaissance as “an experienced, ambitious Nigerian-led consortium,” Shell says the sale is part of its plan to concentrate its own Nigerian investment in deepwater and integrated gas.

With the bulk of Nigeria’s liquefied natural gas (LNG) feed gas coming from SPDC, it is important that Shell has agreed to play a supportive role after the sale so that all goes smoothly.

The sale cannot close until approvals from Nigeria’s federal government and other conditions are met.

Seplat: Securing a Long-Awaited Approval

There is, fortunately, one slow-moving approval story that has recently been resolved. On June 14, 2024, Arise News reported that NNPC has withdrawn its court case objecting to the ExxonMobil/Seplat deal, clearing a path for ExxonMobil to sell its entire interest in Mobil Producing Nigeria Unlimited to Seplat Energy.

Nigerian President Bola Tinubu had met with Liam Mallon, head of ExxonMobil, and members of the Ministers of Petroleum two months earlier, asking that officials remove barriers to approval.

The USD 1.28 billion deal was first greenlighted over two years ago by the parties, but politics and legalities hindered the sale from closing. The deal will turn over the U.S. company’s shallow-water OMLs 67, 68, 70, and 104 to Seplat and allow it to benefit from stakes in the Bonny River and Qua Iboe terminals and natural gas liquids recovery plants.

All of ExxonMobil’s offshore shallow-water operations are included in the agreement — the effect of which is to create a major independent Nigerian energy company. The upshot is that the sale is a very significant opportunity for the country to increase its daily crude production by 700,000 or more barrels.

The approvals process became gridlocked just months after the agreement was made when the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) cited an “overriding national interest,” and state-owned NNPC sued ExxonMobil.

Earlier this year, NUPRC tried to hasten regulatory approval for the sale, when NUPRC’s chief executive, Gbenga Komolafe, revisited a list of conditions that must be met for divestment.

Komolafe invited the parties involved to a May meeting and stated that, hinging on the results of the meeting, approval might be given within two weeks.

A signed settlement agreement resulted, with Komolafe, emphasizing the issues of decommissioning, host community development, and environmental remediation.

The terms of the agreement include increasing NNPC’s interest in the four OMLs from 60% to 70%, decreasing Seplat’s interest from 40% to 30%, while Seplat will gain a 10% interest in UTM Offshore’s floating LNG project.

Komalfe stated his unwillingness that Nigeria carry financial burdens resulting from divesting entities continuing to operate assets in the country.

Other issues that have been raised are:  

  • While waiting on approvals, divestors naturally don’t want to further invest further in these assets.
  • Production can decline while approvals are stalled.

Tinubu has asked ExxonMobil for suggestions on improving Nigeria’s oil and gas investment environment.

Step Up Approvals, for Nigeria’s Sake

President Tinubu’s efforts to bring together various parties around the ideas of stability, transparency, and an even playing field hold much promise for the role of Nigerian oil companies in increasing domestic production.

Delays in approvals for these companies’ acquisitions cripple the ability of these Nigerian companies to benefit their country. And that, after all, should be a goal that government regulators and homegrown petroleum firms share.

Distributed by APO Group on behalf of African Energy Chamber.

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West African Development Bank (BOAD) and PROPARCO Launch a Landmark €200 Million Cross-Financing Operation to Boost the Private Sector in the West African Economic and Monetary Union (WAEMU) Region

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This structure directly addresses current challenges related to reforming the global financial architecture by introducing an innovative and catalytic financial instrument

Together with BOAD, we are reaching a major milestone in our commitment to boosting financing for African economies, particularly within the WAEMU region

NAIROBI, Kenya, May 14, 2026/APO Group/ –On the sidelines of the Africa Forward summit, the West African Development Bank (BOAD) (www.BOAD.org) and PROPARCO, a subsidiary of the AFD Group, announced the signing of an unprecedented €200 million financing agreement (equivalent to approximately CFAF 131 billion). Structured by Galite as a cross-currency transaction between the euro (EUR) and the CFA franc (XOF), this operation is a global first in both its nature and ambition.

 

This structure directly addresses current challenges related to reforming the global financial architecture by introducing an innovative and catalytic financial instrument. It enables:

More efficient allocation of resources through expanded access to the XOF market, helping diversify financing options for local businesses;

Greater stability through support for the WAEMU region’s foreign exchange reserves, ensuring stronger macroeconomic resilience;

Direct impact through the financing of transformative private-sector projects, a key driver of job creation in the region.

Françoise Lombard, Chief Executive Officer of PROPARCO, stated:

“Together with BOAD, we are reaching a major milestone in our commitment to boosting financing for African economies, particularly within the WAEMU region. This initiative is fully aligned with the momentum to reform the development finance architecture by providing a tangible solution to increase the mobilization of local-currency resources in support of the private sector and local economies.

I am delighted by this partnership, which embodies a truly win-win approach and reflects our shared determination to act with ambition and pragmatism to sustainably support the development of the private sector across WAEMU economies, particularly our clients in the region, to whom we will be able to offer more loans denominated in CFA francs.”

Serge Ekué, President of BOAD, stated:

“The partnership between BOAD and PROPARCO reflects the quality and depth of our strategic cooperation.

Through this initiative, BOAD is reaffirming its role as a mobilizer of resources by attracting additional investment for the benefit of the region. Expanding the range of available financing tools is essential to sustainably support the transformation of WAEMU economies.

This transaction marks an important milestone in our collective ability to channel greater financing toward projects delivering strong economic and social impact across Africa.”

 

Distributed by APO Group on behalf of Banque Ouest Africaine de Développement (BOAD).

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Governor of the Central Bank of Egypt and President of Afreximbank Hold a Press Briefing on Egypt’s Ongoing Preparations to Host the 33rd Afreximbank Annual Meetings in Alamein

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The briefing underscored the strong strategic partnership between Egypt and Afreximbank, while highlighting the Bank’s support for key sectors, including financial services, trade, industrial infrastructure, manufacturing, oil and gas, telecommunications, power, and construction

H.E. Mr. Hassan Abdalla, Governor of the Central Bank of Egypt (CBE), and Dr George Elombi, President and Chairman of the Board of Directors of Afreximbank (www.Afreximbank.com), held a joint press briefing at the CBE’s headquarters on 13 May 2026 to address preparations for 33rd Afreximbank Annual Meetings (AAM2026). The AAM2026 will be held under the patronage of H.E. President Abdel Fattah El-Sisi, President of the Arab Republic of Egypt, in Alamein city from 21 to 24 June 2026.

Attended by over 100 local and international media representatives, both in person and virtually, the briefing provided updates on preparations for AAM2026, expected participation, and Egypt’s role as host country for one of Africa’s leading annual gatherings focused on advancing the continent’s economic transformation.

 

In his remarks, H.E. Mr. Hassan Abdalla, Governor of the Central Bank of Egypt, reaffirmed Egypt’s commitment to the successful hosting of the AAM2026 and emphasised the country’s readiness to host the event as well as its long-standing partnership with Afreximbank to support Africa’s economic development, trade and investment.

 

Mr Abdalla said: “Egypt is honoured to host the 33rd Afreximbank Annual Meetings in Alamein, reflecting our continued commitment to supporting Africa’s economic integration, trade expansion, and sustainable development.”

He also noted that these Meetings represent a high-level platform for dialogue and the exchange of views on the future of African economic and financial cooperation.

He added: “The Meetings extend beyond conventional discussions to advance key continental priorities, including trade finance, regional integration, and the pressing need to reform the global financial architecture to better reflect the development needs of emerging economies.

Dr. George Elombi, President and Chairman of the Board of Directors of Afreximbank, expressed his appreciation to H.E. Mr. Hassan Abdalla for his strong support and commitment to hosting AAM2026 in Alamein and for the efforts by all relevant institutions in coordinating these meetings in Egypt.

 

“Egypt and Afreximbank share a common vision to accelerate Africa’s economic development, industrialisation, and widespread economic prosperity across the continent.

 

“AAM2026 will provide a valuable opportunity to strengthen partnerships, unlock investment opportunities, and advance discussions on intra-African trade, Africa’s financial sovereignty, and its economic resilience in an increasingly complex global environment”.

Egypt and Afreximbank share a common vision to accelerate Africa’s economic development, industrialisation, and widespread economic prosperity across the continent

 

Dr Elombi added that “Through our Annual Meetings, Afreximbank aims to identify priority projects and actionable programmes that will accelerate the transformation of Africa’s trade infrastructure. Africa’s pace of growth will be driven by industrialisation and intra-African trade, and achieving this will require significant improvements in processing, logistics, and importantly, policy support from governments.”

 

The briefing underscored the strong strategic partnership between Egypt and Afreximbank, while highlighting the Bank’s support for key sectors, including financial services, trade, industrial infrastructure, manufacturing, oil and gas, telecommunications, power, and construction.

 

Additionally, the press briefing outlined the significant opportunities associated with Egypt hosting AAM2026, including enhancing the country’s position as a regional financial and business hub, supporting the Meetings, Incentives, Conferences and Exhibitions (MICE) sector, creating new opportunities for Egyptian businesses, investors and the broader private sector, as well as providing a major boost to tourism in Alamein.

 

Dr Elombi said that the Bank has provided approximately US$9.5 billion in financing to Egypt over the past three years. He also referenced the groundbreaking of the Afreximbank African Trade Centre (AATC) in New Administrative Capital in December 2025, noting that the landmark US$250 million development will strengthen Egypt’s role as a regional hub for trade facilitation, payments, logistics, and SME development.

 

Dr Elombi further outlined plans for the proposed pan-African Gold Bank, an initiative designed to formalise Africa’s gold value chains, strengthen central bank reserves, and reduce the continent’s dependence on offshore refining and external trading centres.

 

Over the years, Afreximbank’s Annual Meetings have become one of the leading platforms for shaping dialogue on Africa’s economic future and advancing intra-Africa trade. The 33rd Afreximbank Annual Meetings are expected to bring together Heads of State, government ministers, central bank governors, business leaders, academics, entrepreneurs, private sector investors, and development partners. They will deliberate on the key issues shaping Africa’s economic future and trade agenda, while advancing practical solutions for the continent.

 

The AAM2026 programme will offer policy discussions, plenary sessions, business and investment forums, deal-signing ceremonies, major announcements, networking events, bilateral meetings, and forums on intra-African trade and the African Continental Free Trade Area (AfCFTA). It will also feature presentations on trade finance, industrialisation, energy, infrastructure, and digital transformation.

Distributed by APO Group on behalf of Afreximbank.

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DHL Express Sub-Saharan Africa (SSA) celebrates its 53rd Transported Asset Protection Association’s (TAPA) Facility Security Requirements (FSR) certification

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DHL Express SSA is the most TAPA certified company in the Region and was the first company in the TAPA EMEA Region to attain multi-site certification for a Region

LAGOS, Nigeria, May 14, 2026/APO Group/ —
  • Increases TAPA certifications across the Region, total of 53 sites across Sub-Saharan Africa
  • DHL Express the most TAPA-certified company in SSA
  • Lekki contributes to DHL Express surpassing the 500 facility milestone in TAPA certifications worldwide
  • Part of global €250 million investment in world-class security infrastructure by DHL Express

 

DHL Express (www.DHL.com) has announced that its Service Center in Lekki (Nigeria) has officially been certified according to the Transported Asset Protection Association’s (TAPA) Facility Security Requirements (FSR). This certification contributes to the over 500 TAPA certified sites globally and increase the certifications across Sub-Saharan Africa to 53 sites across 19 countries as part of a multi-site certification.

 

As the world’s most TAPA-certified logistics provider, DHL Express continues to set the benchmark for world-class supply chain security. The certification of 53 facilities in SSA strengthens a network that has already exceeded 500 TAPA-certified facilities globally, supported by a worldwide EUR250 million investment in advanced, industry-leading security technologies and processes. DHL Express SSA is the most TAPA certified company in the Region and was the first company in the TAPA EMEA Region to attain multi-site certification for a Region.

 

Anthony Beckley, VP Network Operations and Aviation at DHL Express SSA said: “Security is a cornerstone of DHL’s operations and a critical enabler of trade across Sub‑Saharan Africa. By continuously strengthening security standards at our facilities across the region, we help protect our customers’ shipments while building confidence in the supply chains that connect Africa to the world. As African businesses expand their reach into global markets, they rely on trusted, resilient, and world‑class logistics partners. We are proud to support this growth through industry‑leading security practices, underscored by our achievement of 500 TAPA certifications worldwide.”

Security is a cornerstone of DHL’s operations and a critical enabler of trade across Sub‑Saharan Africa

 

TAPA (Transported Asset Protection Association) certification is a comprehensive process of membership, verification, and auditing designed to ensure the security of customer shipments throughout the supply chain. It is based on rigorous standards such as FSR (Facility Security Requirements) and TSR (Transport Security Requirements), which can be achieved through independent audits or, for Level 3 (basic), via self-certification by a registered Authorised Auditor (AA), followed by submission of documentation to TAPA for validation and issuance of a certificate typically valid for three years. The Security Requirements established by the Association are recognised worldwide as industry benchmarks, making TAPA certification an essential mark of excellence for customers seeking the highest levels of reliability and protection.

 

This achievement not only affirms DHL Express as the global leader in secure logistics but also highlights Nigeria’s strategic contribution to the company’s security excellence in SSA.

 

Adrian Whelan, SVP and Head of Global Security at DHL Express, commented: “The TAPA certification of Lekki and the 53 sites TAPA certified across the SSA Region highlights DHL Express’ commitment to providing our customers in Africa with world-class security infrastructure. Customers want to ship their valuable goods through a secure and resilient supply chain, and DHL Express provides the most secure and resilient supply chain, not only in SSA but globally”.

 

The TAPA FSR certification is a central element of the broader security strategy of DHL Express. As global supply chains become increasingly complex, certified operations ensure consistent protection, risk mitigation, and resilience across the entire DHL network.

 

The achievement of the TAPA FSR certification was formally celebrated on May 13 during an event hosted at the DHL Express Lekki facility in Lagos, Nigeria. The event brought together private and public sector partners who share the aim of building resilient, transparent, and high-standard logistics ecosystems across SSA.

Distributed by APO Group on behalf of DHL Express.

 

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