CAPITALDIGEST DAILYNEWS, 30/03/2026

FG SPEEDS APPROVALS TO REVIVE DORMANT OIL WELLS

The Federal Government has significantly reduced the time required to approve applications for the reactivation of idle oil wells, cutting the process from weeks to a matter of hours in a bid to boost crude oil production and take advantage of rising global energy prices. The move, being driven by the Nigerian Upstream Petroleum Regulatory Commission, is part of a broader push to ramp up output as crude prices hover close to $100 per barrel, creating what officials describe as a short-term window of opportunity for producers. A new report by Bloomberg on Wednesday, quoting sources familiar with the development, said the regulator now grants approvals within hours of submission, a sharp departure from the previous timeline of between two and six weeks. The report read, “Nigeria has slashed the time it takes to approve applications to revive idle oil wells from weeks to hours as Africa’s top crude producer seeks to take advantage of high energy prices.” Confirming the development, a spokesperson for the commission said the agency had adopted “speedy approvals” across the board to encourage production growth. “We are giving speedy approvals for all activities that could increase production,” the official said, underscoring the urgency of the government’s strategy. The accelerated process is already attracting interest, particularly from indigenous oil companies seeking to return to suspended or underutilised wells. These firms are increasingly targeting re-entry projects as a quicker and more cost-effective alternative to drilling new wells. The report noted that reviving dormant wells requires less capital and shorter timelines compared to greenfield exploration, which can take years of planning and development before yielding first oil. Nigeria’s renewed urgency comes amid shifting global oil trade dynamics, with buyers increasingly turning to alternative suppliers such as Nigeria and Angola in response to geopolitical tensions affecting traditional sources in the Middle East. The development has intensified competition among African producers to capture market share and maximise revenue from elevated crude prices. In addition to fast-tracking well reactivation permits, the NUPRC has also streamlined approvals for evacuation processes and the deployment of barges at production facilities and export terminals, further easing operational bottlenecks. Despite the government’s push, Nigeria’s oil output has remained underwhelming in recent months, limiting its ability to fully benefit from favourable market conditions. Data show that production dropped to about 1.31 million barrels per day in February, the lowest level in 17 months. The decline was largely attributed to maintenance activities at a major 225,000 barrels-per-day facility operated by Shell Plc. This figure remains significantly below Nigeria’s historical peak of over 2 million barrels per day and its current production target of 1.84 million barrels per day. Even during the 2022 oil price surge, when crude prices climbed as high as $130 per barrel following Russia’s invasion of Ukraine, Nigeria averaged only about 1.34 million barrels per day, well below its capacity. To bridge the production gap, regulators are increasingly focusing on reactivating dormant assets. In 2024 alone, the NUPRC approved about 500 permits for the reopening of idle wells, including projects involving major indigenous players such as Heirs Energy and Seplat Energy Plc. Officials say the current wave of accelerated approvals is expected to build on that momentum, delivering incremental production gains in the near term. The latest policy direction aligns with recent calls by the Minister of State for Petroleum Resources (Oil), Heineken Lokpobiri, who has urged operators to seize the opportunity presented by rising oil prices. Speaking at the Cross Industry Group meeting in London, the minister challenged industry players to prioritise initiatives capable of delivering immediate output increases. “The current global situation presents a window of opportunity that we must collectively take advantage of in the short term,” Lokpobiri said. He added, “Nigeria remains one of the most attractive investment destinations in the global oil and gas industry. It is important for operators not only to recognise the opportunity before us but to actively pursue programmes capable of delivering immediate production gains.” The minister identified key interventions, including re-entry programmes, in-field well development, and other operational measures that can be executed quickly. “These are initiatives that can be implemented within a short timeframe to boost production,” he said. Lokpobiri also highlighted ongoing reforms aimed at strengthening investor confidence, including the implementation of Executive Orders and targeted fiscal incentives. “My focus has been on demonstrating the strength of Nigeria’s investment climate, the predictability of our regulatory framework, and the strong collaboration between government agencies and industry players,” he said. While noting that government reforms are already yielding positive momentum, the minister called on investors to reciprocate by committing to more Final Investment Decisions. “We are doing much more to strengthen the sector, but investors must also step forward by committing to more FIDs,” he added. The success of the fast-tracked approval regime will depend on how quickly operators can translate permits into actual production gains. While the policy could unlock stranded capacity and improve output in the short term, broader challenges, including oil theft, infrastructure constraints, and underinvestment, continue to weigh on Nigeria’s production outlook. Nonetheless, the government’s latest move signals a more proactive regulatory stance, as Africa’s largest oil producer seeks to reclaim lost output and position itself to benefit from evolving global energy dynamics.

NEW TAX LAW REDEFINES PRACTICE, SETS HIGHER BAR – CITN

The Chartered Institute of Taxation of Nigeria has said the enactment of the new tax reform laws has significantly raised the importance of certified tax professionals in the country’s fiscal system. The president of the Institute, Innocent Ohagwa, stated this at the opening of the March edition of the 2026 Legal Practitioners’ Conversion Training Programme held virtually on Tuesday. Represented by a council member, Funsho Abidakun, the CITN President noted that only accredited professionals can act on behalf of taxpayers, citing provisions of the Nigeria Tax Administration Act. “The enactment of the new tax reform laws in June 2025 has strategically and ethically elevated the role of tax professionals. The new legal framework has redefined who can represent taxpayers. “Section 33(1) provides that a taxpayer may either represent itself or be represented by a tax agent accredited by the relevant tax authority. “Furthermore, Section 147 defines a tax agent as any person acknowledged and duly certified by a professional body in Nigeria to represent the taxable person,” he stated. He said the development directly reinforces the institute’s mandate to regulate tax practice in Nigeria and underscores the need for proper certification. “It is within this context that this conversion training programme becomes very imperative. It provides a structured pathway for legal practitioners to acquire the specialised knowledge required for admission into the institute,” Ohagwa added. The CITN President explained that taxation has become increasingly complex and multidisciplinary, requiring more than just legal knowledge. He said, “Taxation, by its very nature, is multidisciplinary and evolving, sitting at the intersection of law, economics, business and accounting. “Becoming an effective tax professional requires more than a grasp of statutes; it demands the ability to interpret those statutes within the context of finance and business realities,” he added. Ohagwa said participants would be exposed to key aspects of the newly enacted tax laws and other specialised areas. He urged the 103 lawyers undergoing the training to take full advantage of the training and continue building their professional capacity beyond the programme.

NGX VALUE DIPS TO N128.98TN AMID BEARISH PRESSURE

The Nigerian equities market reversed its recent upward trajectory on Wednesday as sustained profit-taking in banking heavyweights dragged the benchmark index lower, wiping out billions in investor wealth. Data from the Nigerian Exchange Limited showed that the All-Share Index declined by 37 basis points to close at 200,925.75 points, resulting in a loss of N476.73bn in market value, while the year-to-date return moderated to 29.12 per cent. Market sentiment remained cautious throughout the session, reflecting an extended period of volatility as investors locked in profits from recent rallies, with analysts noting that buying interest was simply insufficient to sustain the market’s upward momentum. Selling pressure was most pronounced in key stocks including Fidson Healthcare Plc, Zenith Bank Plc, Transcorp Plc, First Holdco Plc, May & Baker Nigeria Plc, United Bank for Africa Plc, Nigerian Exchange Group Plc, and Lafarge Africa Plc, alongside other laggards that collectively weighed on the overall performance. As a result, total market capitalisation by 0.37 per cent to N128.98tn, underscoring the bearish undertone of the trading session despite a mixed picture across different sectors. The Insurance Index led the gainers by rising 0.76 per cent on the back of price appreciation in Guinea Insurance Plc, Sunu Assurances Nigeria Plc, Mansard Insurance Plc, and AIICO Insurance Plc, while the Consumer Goods Index gained 0.38 per cent supported by interest in PZ Cussons Nigeria Plc and Dangote Sugar Refinery Plc. On the flip side, the Banking Index fell 0.98 per cent due to profit-taking in Zenith Bank Plc and United Bank for Africa Plc, while the Industrial Goods Index slipped marginally by 0.11 per cent and the Oil and Gas Index closed flat.

 FDI UNDERPERFORMS AMID SURGE IN 2025 CAPITAL INFLOWS

Foreign direct investment accounted for less than four per cent of total capital imported into Nigeria in 2025, despite a significant increase in overall foreign inflows, data from the National Bureau of Statistics has shown. The data indicated that total capital importation rose to $23.22bn in 2025 from $12.32bn recorded in 2024, reflecting a strong rise in foreign inflows during the year. However, FDI contributed only $923.01m, representing 3.97 per cent of the total. This compares with $674.71m recorded in 2024, when FDI accounted for 5.48 per cent of total inflows, showing that although FDI grew by $248.30m year-on-year, its share declined as other investment categories expanded at a faster pace. Further analysis showed that portfolio investment remained the dominant driver of capital importation in 2025, rising to $19.74bn from $8.38bn in 2024. This accounted for 85.03 per cent of total inflows, compared with 68.00 per cent in the previous year. On a quarterly basis, portfolio investment maintained a strong presence throughout the year, accounting for 92.25 per cent of inflows in the first quarter, 82.02 per cent in the second quarter, 80.70 per cent in the third quarter, and 85.14 per cent in the fourth quarter. In contrast, FDI remained weak across all quarters, contributing 2.24 per cent in Q1, 2.79 per cent in Q2, 4.93 per cent in Q3, and 5.55 per cent in Q4, despite some improvement in the second half of the year. In nominal terms, portfolio inflows of $19.74bn were more than 21 times higher than FDI inflows, highlighting the imbalance in the structure of foreign capital entering the country. A breakdown of FDI showed that inflows increased steadily from $126.29m in Q1 to $142.67m in Q2, before rising sharply to $296.25m in Q3 and $357.80m in Q4. The fourth quarter accounted for about 38.8 per cent of total FDI, while the second half of the year contributed roughly 70.9 per cent. Equity investment remained the largest component of FDI at $868.29m, representing about 94.1 per cent of total direct investment, while other capital rose to $54.72m from $9.20m in 2024. Despite the improvement in FDI value, the data showed that Nigeria’s foreign inflows remained largely driven by short-term portfolio investments rather than long-term capital associated with business expansion and job creation. The World Bank Group’s Chief Economist and Senior Vice President, Indermit Gill, recently said that FDI is plummeting to new lows at the same time that public debt is reaching record highs. According to him, private investment will now have to boost economic growth, and FDI happens to be one of the most productive forms of private investment. “Yet, in recent years, governments have been busy erecting barriers to investment and trade when they should be deliberately taking them down. They will have to ditch that bad habit,” he warned. In February 2026, the Federal Ministry of Industry, Trade, and Investment unveiled plans to deepen trade facilitation and tighten policy execution in 2026, following a sharp rebound in capital inflows and export performance in 2025. According to the FMITI Outlook 2026, the ministry will focus on sustaining reform momentum while strengthening implementation frameworks to translate consolidation into sustained growth, exports, and jobs.

CBN SIGNALS ECONOMIC RESET AS INFLATION DROPS, RESERVES HIT $50BN

The Central Bank of Nigeria has signalled a gradual economic reset, attributing improvements in inflation, foreign reserves, and investor confidence to its monetary and financial sector reforms. Speaking at the CBN Special Day during the 37th Enugu International Trade Fair on Friday, the Acting Director of Corporate Communications and Investor Relations, Sidi Hakama, said the bank’s policies were yielding tangible results. “Headline inflation has declined from a peak of 34.8 per cent in late 2024 to 15.06 per cent by the end of February 2026,” she said, highlighting the apex bank’s efforts in stabilising prices. Hakama added that the reforms have also spurred capital inflows and strengthened external reserves, with reserves rising from less than $10 billion to $50.45 billion. Capital and investment inflows, she noted, increased nearly 200 per cent between 2023 and 2025. “These gains are driven by reforms under CBN Governor Mr Olayemi Cardoso, including a more transparent foreign exchange regime. “The new FX manual removes restrictive capital controls and simplifies trade and investment procedures, increasing liquidity in the market,” she explained. She further disclosed that the bank is transitioning to an inflation-targeting framework designed to sustain price stability. “This represents a significant shift toward a forward-looking, rules-based monetary policy system anchored in long-term price stability. It will help shape market expectations and cushion the economy from shocks,” Hakama said. On the banking sector, Hakama reported progress in the ongoing recapitalisation exercise ahead of the March 31, 2026 deadline. “As of March 17, 32 banks have met new capital requirements, with about 28 per cent of recapitalisation investments coming from foreign sources. This reflects renewed confidence in Nigeria’s financial system,” she noted. The reforms have also earned international recognition, with the CBN receiving the Central Bank of the Year 2026 Award. The President of the Enugu Chamber of Commerce, Industry, Mines and Agriculture, Nnanyelugo Onyemelukwe, commended the CBN for restoring confidence in the financial system but cautioned that high interest rates could undermine the gains. “Although the Monetary Policy Rate was recently reduced from 27.0 per cent to 26.5 per cent, borrowing costs remain high. Interest rates need to reach single digits to improve access to credit and boost productivity and GDP,” Onyemelukwe said.