Economy

Nigeria’s crude faces declining demand as OPEC market share shrinks in 2024

— Angola quits OPEC in 2024

The Eyewitness Reporter with agency reports

Nigeria, a member of the Organisation of Petroleum Exporting Countries (OPEC) is likely to face compounded economic challenges in 2024 as its crude is likely to face a declining demand in the international market in 2024.

This is as a result of the shrinking market share of OPEC in the coming year.

It could be recalled that revenue from crude oil forms the mainstay of Nigeria’s economy.

According to a report, OPEC is facing weakening demand for its crude in the first half of 2024 just as its global market share declines to the lowest since the Covid-19 pandemic on the back of output cuts and member Angola’s exit, according to Reuters calculations and data from forecasters.

The trend means the group would struggle to ease production cuts unless global oil demand accelerates or OPEC is prepared to accept lower oil prices.

Angola said this month it is leaving the Organization of the Petroleum Exporting Countries (OPEC) from January 2024, following exits by Ecuador in 2020, Qatar in 2019 and Indonesia in 2016.

Angola’s departure will leave the group with 12 members and take its production to below 27 million barrels per day (bpd) – less than 27% of the total global supply of 102 million bpd.

The last time OPEC’s market share fell to 27% was during the 2020 pandemic when global demand dropped by 15-20%. Global demand has since then recovered to record levels, meaning OPEC has lost market share to rivals.

The group produced around half of global crude in the 1970s before the onset of non-OPEC supply sources such as the North Sea.

In later decades, OPEC’s share stood at between 30% and 40% but record output growth from rivals such as the United States has steadily eaten into that share in recent years.

As of November 2023, OPEC’s crude oil output accounted for 27.4% of the total market, down from 32-33% in 2017-2018, according to figures from the group’s monthly reports.

OPEC was founded in 1960 by Saudi Arabia, Kuwait, Venezuela, Iran and Iraq. Angola joined the group in 2007. Since 2017, OPEC has worked with Russia and other non-members as part of the OPEC+ group to manage the market.

Some small producers have joined OPEC in recent years, including Gabon in 2016, Equatorial Guinea in 2017 and Congo in 2018.

OPEC+ is currently cutting around 6 million bpd from its production so the group could in theory raise output to fight for market share.

But it would come with a deep drop in price if demand for crude doesn’t improve.

Some OPEC+ members including Russia have said the group could take additional measures if needed.

Figures from three closely watched oil forecasters – the International Energy Agency (IEA), the U.S. Energy Information Administration (EIA) and OPEC itself – suggest little room for an easing of the cuts in the second quarter.

The EIA sees demand for OPEC crude falling in the second quarter from the first, based on a Reuters calculation.

The IEA sees demand for OPEC crude holding steady while OPEC also sees it falling, albeit from a higher level than the other two forecasters.

OPEC sees its market share increasing in the long run as output falls elsewhere and world demand climbs further.

Its latest World Oil Outlook predicts the group’s total share of the oil market will rise to 40% in 2045 as non-OPEC output starts declining from the early 2030s.

Economy

We haven’t stopped Customs, FIRS, NUPRC, others from deducting cost of revenue collection at source – FG

Funso OLOJO

The Federal government has debunked the widely- held insinuation that it has stopped the standard practice of revenue – generating agencies such as the Federal Inland Revenue Service (FIRS), the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), and the Nigeria Customs Service (NCS) to deduct their cost of collection at source.

In a statement issued by the Federal Ministry of Finance and signed by Mohammed Manga, Director of Information and Public Relations in the ministry, at no point did the Minister of Finance and the Coordinating Minister of Economy, Wale Edun, announced the discontinuation of such practice.

“We categorically state that these reports are inaccurate and misleading.

“At no point during his remarks at the Nigeria Development Update (NDU) programme hosted by the World Bank did the Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, announce or imply any change to the existing policy on the cost of collection deductions.

“For the avoidance of doubt, there has been no policy change regarding the deduction of costs of collection at source by revenue-generating agencies. The current framework remains in effect.

“What is underway are ongoing policy discussions in line with the directives of His Excellency, President Bola Ahmed Tinubu, to review cost of collection structure.

“These discussions are part of broader efforts to enhance transparency, efficiency, and value-for-money in public financial management.

“However, no final decision has been made on this matter.

“The Ministry assures all stakeholders and the public that revenue operations continue uninterrupted and that any future adjustments will be guided by due process, stakeholder engagement, and clear communication.

“We urge media organisations to seek clarification from official sources before publishing information that may cause unnecessary confusion.

“The Ministry appreciates the continued support of Nigerians as we work collectively to build a stronger, more transparent, and sustainable economy” the statement concluded

Economy

Le Look Nigeria marks 40 years of ingenious local fabric branded bags on October 1st

Gloria Odion

All is set to mark the 40 years anniversary of Le Look Nigeria Limited, makers of Le look Bags brands.

According to the founder and Chief Executive Officer(CEO), Chief Mrs. Chinwe Ezenwa, arrangements have been concluded to hold the event on October 1, 2025 at Federal Palace Hotel, Lagos.

The event with morning and award night sessions is themed: “Legacy of Resilience: Empowering Entrepreneurs for Africa’s Economic Future.”

Ezenwa added:”Le Look 40th Anniversary is a milestone that celebrates resilience, creativity, and the power of Nigerian enterprise.

“Founded in 1985, Le Look has grown from a small women-led business into a proudly Nigerian manufacturer, exporting unique, locally crafted bags to international markets.

“Over four decades, we have stayed true to our mission of:

Strengthening local manufacturing;

creating jobs and transferring skills;

opening doors for women and youth in enterprise;

supporting Nigeria’s non-oil export drive and the AfCFTA agenda.

“This anniversary is more than a celebration—it is a call to sustain entrepreneurship in Africa’s fast-changing economy,” she noted.

With expected over 300 distinguished guests, including senior government officials, private sector leaders, development partners, and entrepreneurs across generations;

the day will feature keynote address and fireside conversations with veteran entrepreneurs as well as panel sessions on business longevity.

Other features are African Continental Free Trade Agreement(AfCFTA) readiness;

Youth and women forums on inclusive business practices

Exhibitions by government and trade agencies will be part of the activities.

Le Look Nigeria Limited has grown to a global brand with the Le Look Bags Academy built in Abuja, Enugu and Lagos.

Le Look is a manufacturer of afro-centric luxury-life style branded bags inspired by African culture and sensibility.

These handbags are crafted from African prints in celebration of the rich African heritage with international and modern fashion flair.

The company offers multiple product categories, including ready-to-wear, handbags, Apple-support products and other carry-on unique and durable accessories.

“Our partnership with designers in Africa has catalysed the resurgence of retailing locally made goods across the continent,” Ezenwa said.

According to her, “Through our studio in Lagos, we provide on- the-job training, school tuition and health care benefits.

“Our philosophy is simple-to be the first and foremost African luxury brand with global reach”, she added.

Over the years, Le Look Bags Academy has partnered international and government institutions to promote trade and build capacities for the continent.

The Nigerian Export Promotion Council (NEPC) last year partnered Le Look Nigeria Limited to boost Nigeria’s non-oil exports and empower local artisans, particularly women and youth in Lagos. This collaboration, includes the launch of an export skills acquisition center and a fashion innovation hub to equip individuals with skills in bag-making and international trade to meet growing global demand for handcrafted bags.

Also, UNDP Nigeria is in partnership with Le Look Bags Academy, to launch a training program designed to equip unemployed youth with limited formal education, primarily women, with practical skills in bag-making as a sustainable livelihood mechanism.

Le Look Bags Academy serves as the leading hub for mastering bag-making and digital technology skills.

The academy provides a unique, personalized approach to equipping learners with the necessary skills to succeed in the dynamic global landscape.

Le Look Nigeria Limited is the first Small and Medium Enterprise (SME) to receive the Authorized Economic Operator (AEO) certificate from the Nigeria Customs Service (NCS).

As a certified AEO, Lelook benefits from trade facilitation, reduced costs, and improved efficiency in its export and import activities, supporting Nigeria’s goal of becoming a leading trade hub.

Le Look Nigeria is No 0001 under the AFCFTA guided trade Initiative to receive the Certificate of Origin to trade across Africa

Economy

Tinubu orders take-off of National Single Window in Q1 2026

Funso OLOJO

President Bola Ahmed Tinubu has given a marching order to the National Single Window (NSW) Steering Committee to ensure the platform becomes fully operational by the first quarter of 2026.‎

The directive was delivered during Tuesday’s fifth steering committee meeting at the State House, Abuja.

President Tinubu was represented by his Chief of Staff, Femi Gbajabiamila.‎

Gbajabiamila said the recent Tax Reform Acts, signed into law in June, underscored the urgency of accelerating reforms and pursuing Nigeria’s $1 trillion economy target.‎

He highlighted the importance of financial and trade reforms in achieving national economic transformation.‎

“It’s important that we continue to stay focused on this project. So that at the end of the day, we meet our timelines and achieve the results the President expects.‎

“As you all are aware, the project is one of the transformative initiatives of Mr. President which we collectively must ensure is effectively and commendably implemented,” Gbajabiamila said.‎

He emphasised the role of a unified electronic platform in simplifying Nigeria’s import and export operations.‎According to him, the NSW will boost investment and trade revenues, improve transparency, and strengthen Nigeria’s global business credibility.‎

Gbajabiamila urged all agencies to refine their targets and Key Performance Indicators (KPIs) to meet the Phase 1 deadline.‎“I do expect that since the last meeting of the steering committee which was held on the 8th April, 2025, all stakeholders have operated and actively progressed with all the required KPIs and set targets to ensure that we go live with phase 1 in Q1 2026 as was previously scheduled,” he said.‎

Minister of Finance and Coordinating Minister of the Economy, Wale Edun described the progress as encouraging but stressed the need for swift execution.‎

He urged a shift from strategy to concrete implementation, calling the project complex but transformational.‎

Edun urged the committee to improve collaboration and resolve final hurdles to meet the rollout timeline.‎

Minister of Industry, Trade and Investment Jumoke Oduwole also charged the committee to work diligently and meet the Q1 2026 deadline without fail.

Dr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS), thanked the President for consistently supporting the project.‎

“Thank you on behalf of the steering committee. We thank you for the relentless support that you have given to us.”‎

“And to all my colleagues here, we can see that the reward for hard work is more work.

“When we started last month, it is now law; the single window is now in the law.”‎

He asked committee members to stay focused on the mission ahead.‎

The Director of the National Single Window (NSW) Project, Tola Fakolade, gave a brief overview of the steering committee’s progress toward implementing the project.

“All second quarter 2025 key project milestones have been successfully achieved. And the customisation of the Single window platform has commenced,” he said.

He gave assurances that the committee would meet up with the timelines.

The National Single Window project is a Federal Government initiative to streamline trade processes by creating a centralised electronic platform for importers and exporters.

It is a digital trade facilitation platform expected to accelerate economic growth and facilitate cross-border transactions.‎

Launched in April 2024, the NSW seeks to consolidate all agencies involved in imports and exports onto a unified electronic portal.‎

It is expected to reduce trade costs, cut delays, and enhance transparency and efficiency at Nigerian ports.‎

Committee members include representatives from the Ministry of Trade and Investments, the Ministry of Finance, FIRS, and the Nigeria Customs Service.