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CBSL sees demand cooling after rate hike, expects inflation to return to 5% target

Central Bank of Sri Lanka (CBSL) Governor Dr. Nandalal Weerasinghe yesterday said the Monetary Board’s proactive decision to raise policy interest rates by 100 basis points in May is beginning to produce the intended effects, with domestic demand, import growth, and credit expansion showing early signs of moderation.

Addressing the post-Monetary Policy Review media briefing, he said the Board decided to keep policy rates unchanged this month to allow more time for the previous tightening to work its way through the economy.

‘Today, around six to seven weeks after that decision, we are beginning to see the impact of those policy measures. Together with other actions taken by the Government and the CBSL, there are encouraging signs that excess demand is moderating. In particular, both import demand and credit growth have started to slow,’ he said.

The Governor recalled that the May rate hike was prompted by expectations that inflation would move towards the upper end of the CBSL’s target range following adjustments to administered prices, particularly fuel prices, amid Middle East tensions and the Government’s cost-reflective pricing policy.

At the same time, strong domestic demand and rapid private sector credit growth had fuelled import demand beyond the CBSL’s earlier projections, prompting a pre-emptive policy response.

Dr. Weerasinghe said monetary policy operates with a lag and that the Board would continue to monitor the full impact of the previous tightening, whilst closely watching supply-side price pressures, geopolitical developments, and global oil price movements.

He noted that exchange rate stability and moderating import demand indicate that the policy measures are beginning to deliver the desired results.

‘We believe the strong policy action taken at the previous review will continue to have a greater impact over the coming months,’ he said.

The Governor said inflation could edge up over the next few months due to the pass-through of recently administered price increases, but stressed that these effects are expected to be temporary.

‘Inflation expectations remain well anchored. Once these one-off price adjustments dissipate, inflation is projected to return to our target of 5%,’ he added.

Responding to questions on the decline in official reserves during June, Dr. Weerasinghe rejected suggestions that vehicle imports alone were responsible. ‘It was not only vehicle imports. Overall import demand has been elevated across a broad range of categories,’ he explained.

He said monthly imports have remained above $ 2 billion in recent months, reflecting higher international petroleum prices, increased import volumes, and stock-building of fuel reserves. ‘Vehicle imports contributed to the increase, but represented only one component of the broader rise in imports,’ he added.

The Governor said reserve accumulation continues to receive support from multilateral financing.

Noting that Sri Lanka has already received inflows linked to the Fifth and Sixth Reviews under the International Monetary Fund (IMF)-supported program, he expects further disbursements from the Asian Development Bank (ADB) and the World Bank this month and next month.

‘These inflows, together with the CBSL’s foreign exchange purchases from the market, are expected to strengthen the country’s external buffers. According to the IMF program, gross official reserves are projected to exceed $ 8 billion by the end of 2026,’ he said.

On the June Net International Reserves (NIR) target under the IMF program, Dr. Weerasinghe said the final calculation is still being completed, but the CBSL’s preliminary assessment indicates that the target has been met.

He also noted that both the June and December reserve targets had been revised under the IMF program to reflect prevailing economic conditions.

Responding to concerns that many Sri Lankans have yet to feel the economic recovery, the Governor said macroeconomic indicators clearly demonstrate that the economy has turned around.

‘The answer is, look at the data,’ he said.

He pointed to the economy’s 5.1% growth in the first quarter of 2026, following the sharp contractions experienced during 2022 and 2023, noting that quarter-on-quarter growth has remained positive since the recovery began.

‘The data speak for themselves,’ he said, adding that indicators such as credit growth, imports, exports, and broader economic activity are consistent with the official GDP estimates published by the Department of Census and Statistics.

Acknowledging that global uncertainties could slow the pace of expansion over the coming quarters, Dr. Weerasinghe said the CBSL expects the economy to maintain a similar growth trajectory in the second quarter and continue its recovery.

Sansiri targets B40bn of Phuket projects as demand grows

SET-listed developer Sansiri is bullish on Phuket’s residential market as it shifts towards pool villas and foreign buyers, with plans to launch 40 billion baht worth of new projects over four years, matching its total development value on the island over the past 15 years.

Poomchai Mattayompoppinyo, managing director for southern project development, said the company will launch its first pool villa project in the second half of 2026, driven by robust demand from foreign buyers in Phuket’s luxury residential market.

“Pool villa demand is strong but buyers are increasingly concerned about construction quality and delivery delays,” he said. “We will complete the project before launching sales, giving buyers the confidence to see the finished product before committing.”

Buyers of pool villas comprise both foreigners and Thai investors seeking rental income from foreign tourists, said Mr Poomchai.

The first project, The Tales Story One – Bangjo, is located in the Bangjo-Cherng Talay area and comprises 13 units priced from 45 million baht. Each villa has a land plot of 140-150 square wah, offering usable space from 400 square metres with three bedrooms.

He said luxury pool villas of this size typically command monthly rents of 300,000-400,000 baht under one-year lease agreements. During Phuket’s peak tourism season from December to February, some owners lease their properties for only three months, earning 600,000-900,000 baht per month.

“Our development plan from 2027-30 will focus more on beachside and beachfront locations as foreign buyers become an increasingly important customer base,” said Mr Poomchai. “We have already secured more than 10 land plots in these prime areas.”

Locations attracting the strongest foreign demand include Nai Yang, Bang Tao, Surin, Karon and Rawai beaches. Sansiri is also returning to Patong Beach with a new project a decade after launching its first development there.

“While foreign buyers and overseas investors remain our key target, we will continue developing projects for local residents and people relocating to Phuket for work,” he said.

Projects targeting local demand are going to be located in key business districts, including areas around Central Phuket, Kathu, Koh Kaew near the British International School Phuket, the emerging Bang Tao business district and Pa Klok, said Mr Poomchai.

Sansiri entered the Phuket market in 2011 and has since developed around 10,000 residential units, including condos and low-rise houses, with a combined project value of 40 billion baht. Between 2027-2030, the company plans to launch 30 new projects worth 40 billion baht, comprising 17 condo projects valued at 25 billion baht and 13 low-rise housing projects worth 15 billion baht.

In the second half of 2026, Sansiri plans to launch seven projects worth a combined 10 billion baht, including four condo developments in Cherng Talay, Phuket Town, Patong and Rawai, and three pool villa projects in Bangjo, Pa Sak and Phru Jampa.

“We are upgrading our Phuket sales target for this year from 5 billion baht after recording 3 billion in the first half, surpassing our half-year target and up from 2.3 billion year-on-year,” Mr Poomchai said.

Thai and foreign buyers each accounted for half of total sales in the first half, compared with a previous split of 70-75% Thai buyers and 25-30% foreigners. Russian and Chinese buyers remained the largest foreign customer groups.

Cleric counsels women on life’s challenges

Marriage, career, motherhood, or the quiet pain of childlessness – none of life’s heavy burdens should ever derail a woman from her God-given destiny.

That was the message delivered by Apostle Lawrence Achudume, Lead Pastor of Victory Life Bible Church International, at the 2026 All Women Summit in Abeokuta.

Speaking at Victory City, Achudume reminded the audience that despite the immense pressures they shoulder daily, women remain the indispensable bedrock of the family, the Church, and society.

‘As a woman, you may be overwhelmed by responsibilities… but God will never abandon you,’ Achudume declared. ‘There are things God will take you through because of the assignment He has prepared for your life. If you can identify His presence, you will come out stronger.’

Drawing from the biblical account of the fiery furnace, he assured believers that God’s presence is an all-sufficient anchor during trials.

Achudume also challenged the conventional definition of success, arguing that true leadership is defined by sacrifice, discipline, and character-not titles.

‘The world is looking for true leaders to improve the lot of humanity,’ he said. ‘Leadership is beyond position. The real question is: can you pay the price?’

Blaming Nigeria’s current leadership crises on individuals chasing public office without preparation or integrity, he urged women to model humility, patience, and godly principles in their homes and professions.

The summit also paid emotional tribute to the late Reverend Fola Achudume, the visionary whose faith birthed the annual gathering. Guest minister Apostle (Dr.) Ngozi Okwok stated that the greatest honor women could pay her memory is to keep her vision alive by living purposefully.

Warning that ‘ignorance is never an excuse,’ Okwok challenged participants from all economic backgrounds to aggressively pursue personal development and become guiding lights in their communities.

The summit’s impact was made tangible through the ‘Shop for Free’ outreach-a signature legacy of the late Reverend Fola Achudume via Royal Ladies International. Breaking down religious and social barriers, the outreach distributed clothing, shoes, food, and household essentials to massive crowds free of charge.

The 2026 summit, themed: ‘Shine, concluded with powerful prayers for families, the Church, and the nation.

U.S.-based cleric urges youths to utilise talents

A United States-based cleric, Pastor Tola Odutola of Jesus House, Baltimore, has advised Nigerian youths to stop relying on the government for employment.

He said they should instead focus on discovering and developing their talents to create sustainable livelihoods.

Speaking on the sidelines of an empowerment seminar with the theme: ‘Maximising Your Potential’, in Ibadan, Oyo State, Odutola said individuals must identify their natural gifts and nurture them into impactful solutions for the society.

He added: ‘Where we start first is to ask yourself: what gift do I have? What is that thing that inspires me? Every greatness in life starts with a seed.’ The cleric urged youths to cultivate their abilities so they could transition from job seekers to self-reliant problem solvers.

He enjoined them to maintain self-belief, noting personal determination outweighed any environmental limitation.

Recalling his upbringing in Oke-Bola area of Ibadan, Odutola challenged youths not to let lack of parental or societal support hinder their progress.

‘I grew up in this same environment and went to school here. I wasn’t waiting for a father figure to pave the way. You have to struggle and push because you owe yourself the responsibility to succeed,’ he said.

The clergyman cautioned Nigerians against over-dependence on state support, noting that the world’s most vibrant economies were driven by individual entrepreneurs, rather than government interventions. Acknowledging that the state holds the responsibility of creating an enabling environment, he stressed that the primary drive must come from the citizens.

Highlighting the need for career flexibility, the cleric says many university graduates eventually find fulfilment and financial stability outside their formal fields of study.

He said the empowerment initiative was designed to hand-hold aspiring entrepreneurs and provide support to help them launch their visions.

GMA shows and personalities triumph at inaugural FAMAS Broadcast Awards

GMA Network once again affirmed its excellence in broadcast, entertainment, and public service as its programs and personalities emerged among the biggest winners at the first-ever FAMAS Broadcast Awards.

Multi-awarded broadcast journalist Kara David led the network’s roster of winners during the awarding ceremony held on July 20 at The Manila Hotel. She earned three major accolades: Best Documentary for I-Witness’ ‘Embalsamador De Motor,’ Best Public Affairs Talk Show for I-Listen, and Best Host for Public Service for I-Listen. GMA Public Affairs continued its strong showing with Born to Be Wild winning Best Educational Show and Biyahe ni Drew taking home the award for Best Lifestyle Show.

These recognitions further underscore GMA Public Affairs’ enduring commitment to producing thought-provoking documentaries, informative programs, and meaningful stories that inspire, educate, and create a positive impact. GMA Entertainment likewise extended its winning streak, proving its ability to deliver programs that not only captivate audiences, but also create lasting connections with Filipino viewers.

Family Feud was named Best Show for Game, Reality and Competition, while Fast Talk with Boy Abunda received the award for Best Entertainment Talk Show.

Sparkle star Kelvin Miranda brought home the Best Performer for Series and Anthology award for his role in the epic series Sanggre: Encantadia Chronicles.

Meanwhile, the country’s top-rating noontime program It’s Showtime was recognized as Best Variety Show, with Vice Ganda taking home the award for Best Host for Entertainment.

Co-founder of first budget airline Fly540 takes a bow, years after failed grand dream

Named after its launch fare of Sh5,540 on the Nairobi-Mombasa route in 2006, budget airline Fly540 had set out to prove that air travel in Kenya did not have to be a reserve for corporate executives and affluent tourists.

The low-cost carrier attracted international investors and pioneered a business model that competitors would later embrace.

However, the same airline that had promised to ‘democratise flying’ gradually found itself overwhelmed by shareholder disputes, tax claims, aircraft leasing rows, creditor petitions and years of courtroom battles that eclipsed its commercial ambitions.

Named after its launch fare of Sh5,540 on the Nairobi-Mombasa route in 2006, budget airline Fly540 had set out to prove that air travel in Kenya did not have to be a reserve for corporate executives and affluent tourists.

The low-cost carrier attracted international investors and pioneered a business model that competitors would later embrace.

However, the same airline that had promised to ‘democratise flying’ gradually found itself overwhelmed by shareholder disputes, tax claims, aircraft leasing rows, creditor petitions and years of courtroom battles that eclipsed its commercial ambitions.

Behind the fairytale launch of Fly540 was co-founder and widely experienced aviation administrator Nixon Azariah Ochieng’ Ooko, who passed away on July 15, 2026, at 76 in South Africa after an illness, reigniting fresh attention on the rise and painful decline of one of Kenya’s most influential private aviation ventures.

When Fly540 entered the Kenyan market in 2006, domestic aviation was very different, but the founders believed that could change.

The late Ooko, alongside Don Smith, introduced a business model of an airline for entrepreneurs, families, professionals and first-time flyers who had previously relied on long-distance buses and alternative, expensive full-service carriers. Ooko perhaps sought to borrow from his aviation experience at British Airways and Regional Air.

The timing also worked in its favour because, then, Kenya’s economy was expanding, domestic tourism was growing, and regional trade within East Africa was gathering pace.

Demand for faster movement of people between Nairobi, Mombasa, Kisumu, Eldoret and Malindi was increasing. The business later expanded beyond Kenya’s borders into Uganda and Tanzania before extending its footprint into Angola and Ghana through its affiliated operations.

Fly540 appeared to be proving that a budget-friendly model could work alongside its expansion that coincided with the growing investor confidence in African aviation.

Behind the scenes, however, the economics of running a low-cost airline in Africa were more complex than what the founders may have anticipated.

Unlike Europe, where budget airlines benefited from the high passenger volumes, East Africa presented low numbers.

Additionally, competition for Fly540 was also intensifying; other established operators responded to the arrival of the budget carrier by also adjusting their fares on key domestic routes. New airlines also entered the market hoping to capitalise on the growing demand.

Regional expansion as well exposed Fly540 to additional regulatory requirements and operational risks. Although its growth was impressive on paper, it demanded larger financial commitments that pushed the airline to attract one of the biggest names interested in African low-cost aviation.

British investment company Lonrho acquired a significant stake in Fly540 as part of its broader strategy to build transport and infrastructure businesses across the continent.

That relationship later paved the way for another high-profile corporate transaction that promised to transform the airline’s future.

That opportunity was with Fastjet, which was backed by high-profile investors and marketed as Africa’s answer to Europe’s successful budget airlines. Fastjet announced plans to build a pan-African low-cost aviation network and Fly540’s regional presence made it an attractive platform to launch those ambitions.

The lucrative deal turned sour when ownership disagreements emerged over the terms of the acquisition, management control and financial obligations.

Expansion into multiple markets meant more employees, more suppliers, more aircraft, more leases and more regulatory obligations. But as cash flows tightened and growth slowed, disagreements that might otherwise have been settled commercially spilled into corridors of justice.

One of the earliest public signs of strain was through an employment dispute involving Jacqueline Arkle, who had joined Fly540 in 2008 as its East Africa marketing manager before later being appointed country manager for Uganda. Her promotion came when there was pressure on the airline’s regional operations, with passenger numbers under pressure and concerns over its operational reliability.

After her dismissal in 2011, Ms Arkle challenged the move, arguing that the carrier had held her responsible for declining sales despite problems she said were beyond her control, including poor aircraft maintenance, customer service challenges and operational shortcomings. She also contended that she had never been provided with clear performance targets before her job was terminated.

The Employment and Labour Relations Court awarded her compensation running into millions, including damages linked to an advertisement placed by the airline following her dismissal.

Although Fly540 secured temporary relief at the Court of Appeal while challenging the award, the judges required it to deposit half of the decretal amount in a joint interest-earning account.

Employees were not the only creditors seeking redress; tax authorities also turned their attention to the airline. The Kenya Revenue Authority (KRA) pursued Fly540 over alleged unpaid taxes running into more than Sh100 million after a prolonged dispute over tax assessments.

Such tax disputes can be damaging for an airline because it goes beyond just financial liability. They can complicate licensing, affect relationships with regulators and undermine confidence among investors and financiers.

Fly540, by then, was also facing pressure from suppliers and service providers, with creditors seeking judicial intervention to recover their dues.

Some petitions sought to wind up the airline altogether, arguing that it had become unable to meet its financial obligations.

Although Fly540 successfully resisted some of those attempts, the repeated appearance of winding-up proceedings highlighted the extent of the pressure facing the business.

But as experts point out, the aviation industry can be unforgiving when confidence begins to weaken. Unlike many businesses that can continue operating while restructuring debt, airlines require constant access to aircraft, maintenance facilities, insurance, fuel and airport services. Any financial uncertainty echoes across the entire operation.

As Fly540 sought to stabilise its finances, the airline became embroiled in disputes involving leased aircraft. Canadian aircraft leasing company Avmax Aircraft Leasing Inc and Wells Fargo Trust Company National Association moved to court seeking to recover about Sh775 million from Fly540 and its affiliate, East African Safari Air Express. This was over alleged breaches of settlement and conditional sale agreements involving two aircraft.

The parties had agreed that the aircraft would remain parked while representatives conducted joint inspections before any transfer could take place. But the disagreements emerged over access to maintenance records, engine logs, landing gear documentation, inspection histories and other technical records considered essential in aviation transactions.

The High Court found that company officials had failed to fully comply with earlier court orders permitting inspection of the plane and accompanying technical records. Instead of immediately committing the officials to civil jail, the court imposed a daily financial penalty that would continue accumulating until compliance was achieved.

By the time Fly540 was shutting down, the optimism that had defined its early years was long gone.

New entrants had embraced the market. Jambojet entered the market backed by Kenya Airways (KQ), bringing with it the financial muscle and operational support of the national carrier. Safarilink further strengthened its dominance in the safari circuit, while other airlines like Skyward Express expanded their domestic network and later went regional.

Demand for affordable domestic air travel continued to increase as more Kenyans chose to fly for business, leisure and family travel. In addition, county governments promoted domestic tourism, businesses expanded beyond Nairobi, and improved airport infrastructure made regional connectivity even more attractive. The concept behind Fly540 had not failed, but the business behind it had.

The final chapter of Fly540 unfolded with a regulatory order that confirmed what many in the aviation industry had already begun to suspect-that the airline had run out of runway. The carrier had scaled down its operations after years of shareholder rows, mounting debt, legal battles and shrinking market share.

On September 30, 2022, Fly540’s Air Operator Certificate expired, which brought its scheduled flight operations to a halt. Without a valid permit issued by the Kenya Civil Aviation Authority (KCAA), the airline could no longer legally offer commercial air transport services.

Weeks later, the Competition Authority of Kenya stepped in after receiving more than 50 complaints from consumers who accused the airline of advertising flights it could not operate, canceling flights at short notice and delaying refunds for canceled bookings.

Investigations by the regulator also established that the airline had continued receiving bookings after its operating certificate lapsed.

The authority responded by issuing a cease-and-desist order directing Fly540 to immediately stop advertising flights, selling tickets or presenting itself as capable of providing air transport services until investigations were concluded. It also ordered the airline to refund passengers whose flights had been canceled or whose tickets had been sold after September 30.

That shutdown closed the curtain on one of Kenya’s most ambitious aviation ventures. Although legal battles over aircraft leases, creditor claims and other commercial disputes continued after the last scheduled flight, Fly540’s place in the market had already been taken by rivals.

Treasury cuts domestic borrowing by Sh132bn

The Treasury has cut its target for net domestic borrowing for the fiscal year ending next June by Sh132 billion, reducing the risk of crowding out the private sector in access to credit and easing pressure on borrowing costs.

The target for net domestic financing has been lowered to Sh898 billion from Sh1.03 trillion, just a month after the 2026/27 Budget Statement was presented on June 11.

The Treasury will instead borrow more from foreign markets to offset the reduction in domestic borrowing from banks, pension funds and insurance firms through Treasury bills and bonds, underscoring improved prospects for securing external financing.

The cut in domestic borrowing is expected to increase the pool of funds available in banks for lending to households and businesses.

It will also strengthen the government’s efforts to lower borrowing costs by reducing competition for funds in the domestic market, allowing banks to lower deposit and lending rates.

The government’s overall borrowing target for the fiscal year remains unchanged at Sh1.145 trillion.

“The resulting fiscal deficit, including grants, is Sh1.145 trillion (5.5 percent of GDP) and will be financed by net external financing of Sh247.2 billion (1.2 percent of GDP) and net domestic financing of Sh898 billion (4.3 percent of GDP),” the National Treasury said in its latest disclosures.

The Treasury had initially planned to finance the deficit through Sh116.2 billion in net external borrowing – equivalent to 0.6 percent of GDP – and Sh1.03 trillion in net domestic borrowing, equivalent to 4.9 percent of GDP.

The increase in external financing reflects improved prospects for raising funds abroad as the Treasury seeks to diversify its borrowing sources.

The diversification of external funding is aimed at improving debt sustainability by broadening the investor base, extending debt maturities and lowering financing costs.

“The government is evaluating opportunities to access new and diversified international capital markets. This includes the potential issuance of Samurai bonds in the Japanese market and Panda bonds in the Chinese domestic market,” Treasury Cabinet Secretary John Mbadi said on June 11.

“By tapping into these markets, the government stands to benefit from deep and diversified pools of capital, secure potentially competitive financing terms, and promote currency diversification within the debt portfolio, thereby reducing reliance on traditional funding sources.”

The lower target for domestic financing is expected to ease pressure on credit markets and support continued growth in private sector lending.

Private sector credit has recovered over the past 20 months, growing 9.3 percent in May 2026 compared with two percent a year earlier.

The recovery has been supported by successive cuts in the Central Bank Rate (CBR), which has fallen from 13 percent in 2024 to 8.75 percent.

Average lending rates declined to 14.5 percent in May 2026 from 15.4 percent a year earlier.

Credit growth has remained strong in key sectors of the economy, particularly trade, agriculture, and building and construction.

The revised financing plan will hold if the Exchequer meets its tax revenue targets or contains public spending.

In previous years, revenue shortfalls have widened the fiscal deficit, forcing the government to borrow more domestically.

For instance, the Treasury exceeded its net domestic borrowing target by Sh161.7 billion in the fiscal year ended June 2026.

Net domestic borrowing totalled Sh1.135 trillion, against an approved target of Sh973.6 billion.

Of this amount, Sh993.1 billion was raised through the sale of Treasury bills and bonds by the Central Bank of Kenya (CBK).

Experts: NUPRC’s transparent licensing rounds expand investment windows

Nigeria has opened a new chapter in its upstream petroleum development with the 2025 licensing round conducted by the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), experts have said.

Stakeholders insist that the Petroleum Industry Act (PIA) has eliminated arbitrary allocations, ensuring the licensing round follows open, global standards.

In the exercise, NUPRC reported that 143 companies submitted 200 bids for 37 out of 50 blocks during the commercial bid phase, targeting 500 million barrels in new reserves and 300,000 barrels per day within three years.

What has interested most stakeholders is the transparency of the exercise and the impact it will have on investment inflows into the country’s energy sector and domestic economy.

Chief Executive Officer, Centre for the Promotion of Private Enterprise, Muda Yusuf, said Nigeria is in the age of energy transition, and the transparency NUPRC brought to the exercise will excite foreign investors’ interest in the domestic economy.

He said the 2025 round is ultimately an attempt to build a more resilient, more attractive, and more future-ready energy sector.

‘We are in the age of energy transition. NUPRC’s operation in this exercise is good for the economy. It will boost foreign reserves, firm up the naira and macroeconomic environment while deepening foreign capital inflows to the domestic economy,’ he said.

Continuing, he said: ‘In the past, oil blocks were allocated to family members and cronies of people in authority. What happened right now shows that the country and its agencies have deepened commitment to transparency and global best practices. We must commend NUPRC and other agencies that made this exercise possible or are part of the process.’

He said the level of investment in the oil and gas industry is also expected to rise with the current exercise, given the improved security of oil and gas assets. ‘The new momentum generated will help build capacity to increase the level of production in the oil and gas industry,’ he added.

Coming on the heels of the highly acclaimed 2024 round, the historic 2025 bid round has earned praise for unprecedented transparency and competitiveness. It has also opened a new window for growth and development of the domestic economy.

Steven Martins, an Abuja-based energy expert, said the new bid round’s transparent outcome signals far more than another administrative exercise. ‘It represents a strategic recalibration of Nigeria’s energy ambitions at a time when global markets are shifting rapidly and the country faces pressure to strengthen production, attract capital, and reposition itself in the era of energy transition.

‘NUPRC is looking forward to harvesting an additional 500 million barrels for the national crude oil reserve from the 2025 bid round. These extra barrels are expected to be driven by the commencement of operational activities of the 31 companies that emerged as winners of 37 oil and gas blocks in the bid round, held at the Transcorp Event Centre, Abuja.’

Explaining how it played out, he said the blocks were drawn from diverse terrains, including Niger Delta Onshore, 16; Niger Delta Shallow Water, 18; Niger Delta Deep Offshore, one; Benin Basin Onshore, three; Anambra Basin Onshore, four; Chad Basin Onshore, four; and Benue Trough, four.

The Commission’s Chief Executive Officer, Mrs Oritsemeyiwa Eyesan, who spoke at the Commercial Bid Conference for the Nigeria Licensing Round, themed ‘Expanding Opportunities: Right Play, Right Place, Right Time,’ noted that ‘the assets available in this licensing round have the potential to add about 500 million barrels to Nigeria’s reserves, increasing our existing reserves of crude oil and condensate – which currently stand at 37.01 billion barrels – and 215.19 trillion cubic feet of gas.’

According to her, the rejection of the 13 frontier blocks did not take the Commission by surprise, as they were returned without bidders.

She said that even the assets presented at the 2025 commercial bid were recovered from operators, and NUPRC will similarly assess whether other assets meet the threshold for return to the basket.

Eyesan said: ‘The reason why we are in the market is because of the blocks that we have recovered from existing operators.’

Other analysts said the licensing round marked the first time in the country’s energy landscape that frontier basins had attracted such a level of investor interest.

Managing Director, Bendoski Oil Supplies Limited, Ben Akindele, said the spread and diversity of the winning companies made the exercise more interesting.

He said the licensing round therefore places strong emphasis on attracting investors who can unlock gas assets for power generation, industrial use, domestic consumption, and export.

He explained that in the emerging energy landscape, gas is regarded as a transition fuel, and Nigeria’s ability to commercialise its reserves quickly is crucial for relevance. By prioritising gas-focused exploration and development, NUPRC is positioning the country to meet both domestic needs and international demand while balancing climate considerations.

Economic stability is another critical dimension. Nigeria’s reliance on petroleum revenues means that upstream performance has a direct impact on foreign exchange earnings, fiscal sustainability, and macroeconomic resilience. With increased exploration, new discoveries, and expanded production, government revenues are expected to rise.

This will help support public spending, stabilise the naira through improved forex inflows, and strengthen the overall economic outlook. In a period marked by rising fiscal pressure and fluctuating global oil prices, the licensing round offers an important buffer for national economic stability.

The digitalisation of the licensing process marks a major step toward modernising Nigeria’s petroleum administration. The online portal centralises applications, guidelines, data access, and communication. It reduces paperwork, speeds up approvals, and enables real-time monitoring.

This transition to digital governance brings Nigeria’s regulatory framework closer to global standards and signals a shift toward efficiency, accuracy, and reduced human interference. For investors accustomed to modern regulatory systems, this represents a valuable improvement.

The companies that emerged winners of the 2025 Licensing Round include: Sonic Petroleum Limited (PPL 2A29), CFP Pipeline and Flowlines (2A30), Dutchford EandP Limited (2A32), Attabanson Global Company Limited (2A33 and PPL 901), Rosem Energy Limited (2A38), Pivot-GIS Limited (2A39), Network EandP (2A40), Asharami (2A41), LexOil (2A42), BVOF (2A43), Gupsco Energy Limited (2A44 and 2A51), Saratoga (2A45), Volante (2A46), Concept-Reel Petroleum Services Limited (2A47 and 2A55), Clinton Oil Field (2A48 and 2A62) and Nuway Oaklane Limited (2A49).

Others are Ramec (2A50), Italia (2A53), Blueridge EandP (2A54), Up Energies Limited (2A56), AYM Shafa (2A57), Blackrock Holdings Limited (2A58), Funtay Integrated Business Limited (2A59), Riparian Development and Production Limited (2A60), Nikstallis (2A61 and PPL 900), Stardeep Petroleum (PPL 2010), Dakoda and U Limited (PPL 308 and PPL 800), Southborne Oil and Gas Limited (PPL 902), Lanaka Petroleum (PPL 903), Highban Resources Limited (PPL 700), and Eyre Energy Limited (PPL 801).

Akindele said that, in line with the Petroleum Industry Act 2021, these firms will only be presented with final awards after payment of the appropriate signature bonus and approval by the Minister of Petroleum Resources.

Meanwhile, the Minister of State for Petroleum Resources (Oil), Senator Heineken Lokpobiri, described Nigeria as one of the most attractive investment destinations in the world, given developments in the Gulf region between Iran and the U.S.

He said the Petroleum Industry Act, together with the administration’s ongoing policy and fiscal reforms, has significantly enhanced investor confidence by promoting regulatory certainty, transparency and ease of doing business.

He urged prospective investors to take advantage of the vast opportunities that Nigeria offers.

Continuing, he said: ‘With one of the largest proven natural gas reserves in the world, abundant oil resources, a growing domestic market and a reform-orientated government, Nigeria remains one of the most attractive investment destinations in the global energy market. As we witness today’s proceedings, let us reaffirm our shared commitment to a licensing process that inspires confidence, attracts quality investors and contributes meaningfully to Nigeria’s economic growth and energy security.’

For many analysts, one of the most important foundations laid by NUPRC in recent years is the restoration of investor confidence through transparency and predictability. The Commission’s last licensing round ended without a single petition or litigation, an uncommon feat in Nigeria’s long licensing history. The 2025 edition aims to consolidate this achievement by deploying a fully automated, digital, two-stage bidding process that eliminates bureaucratic ambiguities and ensures that all applicants compete on a level field.

In a global investment environment where certainty has become the most valued currency, Nigeria’s insistence on transparent governance marks a strategic shift that could define the country’s attractiveness for years to come.

The diversity of the blocks offered is equally significant. By broadening access to both high-risk and low-risk terrains, the licensing round ensures participation from both international oil companies and indigenous independents, each able to pursue assets that align with their technical capacity and investment appetite. For a country that has seen its reserves stagnate and its production fluctuate, the introduction of new acreage is an essential step toward reinvigorating upstream activity.

The potential impact on reserves and production capacity is profound. Nigeria’s crude oil output has struggled largely due to ageing brownfield assets, vandalism, and years of underinvestment.

One of the most transformative features of the new licensing round is the Commission’s decision to de-risk exploration through extensive acquisition and reprocessing of geophysical data.

Thousands of kilometres of 2D and 3D seismic surveys have been reprocessed to create high-resolution images of subsurface structures. This effort eliminates one of the biggest deterrents to exploration: uncertainty.

Investors now have access to superior geological data that improves the probability of discovery, shortens exploration-to-production timelines, and reduces overall risk. For a capital-intensive industry where uncertainty translates to billions of dollars, this level of clarity is a major draw. It positions Nigeria as a more competitive exploration destination relative to other emerging regions.

The Commission has also taken steps to reduce financial barriers to entry. Signature bonuses, long considered a high upfront cost for acquiring blocks, have been reduced in line with President Bola Tinubu’s directive to make Nigeria irresistible to investors. Lowering these bonuses is more than a gesture – it frees up capital that can be redirected toward actual field work, especially for indigenous companies that often struggle with financing. It also aligns Nigeria with global best practice, where regulators prioritise long-term investment and production over front-loaded revenue collection.

Beyond investments and reserves growth, the licensing round promises significant economic and social benefits. The development and eventual production of these assets are expected to generate thousands of new jobs. These roles will cut across drilling operations, engineering, geosciences, logistics, ICT, fabrication, supply chain management, and community services.

For host communities and regional economies, this represents improved livelihoods, increased local spending, and accelerated development. For the national economy, it means higher employment, strengthened local content, and enhanced industrial capacity. Nigeria’s emphasis on deeper indigenous participation also ensures that skills, knowledge, and technology are transferred locally, further rooting the benefits of the licensing round within the country.

Ultimately, the Nigeria 2025 Licensing Round is more than an invitation to bid. It is a strategic demonstration of intent: that Nigeria is ready to compete, ready to innovate, and ready to attract global capital inflows.

PURC Urges Consumers To Pay Utility Arrears By Instalment

The Public Utilities Regulatory Commission (PURC) in the Ashanti Region has advised electricity and water consumers not to panic when presented with huge accumulated utility bills, stressing that the law allows such arrears to be settled through an agreed instalment payment plan.

According to the Commission, the provision is contained in Regulation 31 of the Public Utilities Regulatory Commission (Consumer Service) Regulations, 2020 (L.I. 2413), which was enacted to safeguard the interests of both consumers and utility service providers.

PURC explained that consumers are entitled to request an instalment payment arrangement if a public utility, such as the Electricity Company of Ghana (ECG) or Ghana Water Limited (GWL), fails to issue bills for more than three months and later demands payment of the accumulated amount.

The Commission added that the same right applies where a utility provider discovers that it has undercharged a customer and subsequently seeks to recover the outstanding balance.

It noted that under Regulation 31(1), consumers and utility providers are expected to agree on a suitable payment plan to ease the financial burden on affected customers.

Where the two parties fail to reach an agreement, PURC said Regulation 31(2) empowers either the consumer or the utility provider to refer the matter to the Commission for resolution.

The Commission stressed that the regulation was introduced to prevent consumers from being compelled to pay several months’ utility bills at once due to billing lapses or errors by service providers.

It further explained that consumers who comply with an approved instalment payment arrangement are protected from disconnection while honouring the agreed payment schedule.

PURC Ashanti therefore urged the public to familiarise themselves with the provisions of L.I. 2413 and report any disputes relating to accumulated bills to the Commission for redress.

‘The Commission exists to protect the interest of both the consumer and the utility. No one should suffer because of billing delays or errors. Know your rights under L.I. 2413 and use them,’ the Commission stated.

Kogi settles victims of criminal hideout demolition, Works on Airport , Ajaokuta Payouts

The Kogi State Government has paid compensation to victims of the recent house demolition exercise at Idojie-Okene in Okene Local Government Area of the state .

The demolitions were carried out as part of efforts to destroy criminal hideouts and restore peace in the area.

Governor Ahmed Usman Ododo presented the cheque to the affected shop owners/ occupiers in a brief ceremony in Lokoja on Wednesday.

The governor who was represented by the Director General Bureau of Lands, Kehinde Augustine Salihu-Otaru said the move was aimed at restoring the livelihoods of the affected people to continue their lawful business .

He said the state government on 15th January 2026 demolished the structure in the area used by hoodlums to feather the nest of their criminal activities,which was raising concern in the community and the state in general.

The government noted that after due evaluation , it discovered that the demotion exercise affected some residents who were doing their lawful business in the community.

Against this backdrop, the government said it has therefore decided to compensate the affected traders for them to continue with their lawful business in the area.

‘On 15th January 2026, the state government, supervised by the governor himself demolished the structure at Idojie-Okene( popularly known as Sambell area) that is notorious for criminal activities, and endangering the lives of the inhabitants of the community.

‘In the review that followed, the government noted that the exercise affected some residents who were on their lawful business in the community.

‘The case was referred to the Bureau of Lands for review, and today ,we are presenting cheques to compensate the victims for them to continue with their means of livelihoods’, said Salihu-Otaru.

He said the compensation is a quick relief for the victims in order to ensure financial leverage for them to survive, move on with their business and lives in the community.

While Salihu-Otaru said the review certified 23 shop occupiers for the compensation, he noted that the amount given out to the beneficiaries will be shared in the proportion of 70 to 30 percent to cover the demolished shops and the goods involved .

The governor added that his administration listens and addresses genuine complaints, urging the beneficiaries to make good use of the compensation to relive their business and conduct themselves properly while carrying out their lawful business in the community.

Speaking on behalf of the beneficiaries, Alhaji Aliyu Asuku Bello Sambell commended governor Ahmed Usman Ododo for solving the challenge posed by the demolition exercise carried out in their area few months back .

He said the governor was so magnanimous to release the sum of N350,000 to them initially to cushion their condition when they cried out over their predicament, pending the final solution.

‘We thank governor Ahmed Usman Ododo for show of humanity; we will ensure a proper use of this money to relive our means of livelihoods, and bounce back to life’, he said .

However, the Director General Bureau of Lands noted that the compensation for those whose land had been acquired for Air port project at Zariagi-Lokoja and Ajaokuta free trade zone is ongoing, with seriousness its deserved.

While Salihu-Otaru said the government is through with the necessary frame works , he attributed the delay to the volume of people involved , stressing that the government is determined not to temper with the livelihoods of its citizens without due compensation.

‘We are working on three types of compensations currently: payment for Land acquired for Airport project , Ajaokuta free trade zone and that of Idojie-Okene demolition exercise, which has been settled today’, he said .

Meanwhile, he commended governor Ahmed Usman Ododo for creating enabling environment for the agency to carry out the assignment without hiccups associated with such assignments .