Economy
COP28 clashes over fossil fuel phase-out after OPEC pushback
Countries clashed on Saturday over a possible agreement to phase-out fossil fuels at the COP28 summit in Dubai, jeopardising attempts to deliver a first-ever commitment to eventually end the use of oil and gas in 30 years of global warming talks. Saudi Arabia and Russia were among several countries insisting that the conference in Dubai focus only on reducing climate pollution – and not on targeting the fossil fuels causing it, according to observers in the negotiations. On the other side, at least 80 countries including the United States, the European Union and many poor, climate-vulnerable nations are demanding that a COP28 deal call clearly for an eventual end to fossil fuel use. COP28 President Sultan al-Jaber told nations late on Saturday to speed up their work to find a final deal, saying there were “still more areas of divergence than agreement”.
“The window is closing to close the gaps,” he told the summit. OPEC Secretary General Haitham Al Ghais earlier said in comments read out to the summit delegates by an official: “We need realistic approaches to tackle emissions. One that enables economic growth, helps eradicate poverty and increases resilience at the same time.” Earlier this week, the oil producer group sent a letter urging its members and allies to reject any mention of fossil fuels in the final summit deal, warning that “undue and disproportionate pressure against fossil fuels may reach a tipping point”. It was the first time OPEC’s Secretariat has intervened in the U.N. climate talks with such a letter, according to Alden Meyer of the E3G climate change think tank. “It indicates a whiff of panic,” he said. EU climate commissioner Wopke Hoekstra criticised the letter as “out of whack” with climate efforts. “By many, including by me, that has been seen as out of whack, as unhelpful, as not in tune with where the world stands in terms of the very dramatic situation of our climate,” he said. Saudi Arabia is the top producer in OPEC and the de facto leader of the organisation and Russia is a member of the so-called OPEC+ group.
By insisting on focusing on emissions rather than fossil fuels, the two countries appeared to be leaning on the promise of expensive carbon capture technology, which the U.N. climate science panel says cannot take the place of reducing fossil fuel use worldwide. Other countries including India and China have not explicitly endorsed a fossil fuel phase-out at COP28, but have backed a popular call for boosting renewable energy. China’s top climate envoy, Xie Zhenhue, described this year’s climate summit as the hardest in his career. “I have participated in these climate negotiations for 16 years,” he told journalists. “The hardest meeting is this year’s. There are so many issues to settle.” He said there was little chance the summit would be called a success if nations could not agree to language on the future of fossil fuels. India’s environment minister, Bhupender Yadav, demanded “equity and justice” in any deal, holding that rich countries should be leading global climate action. Broader diplomatic grievances were also aired at the podium on Saturday, clouding the focus on global warming.
A Russia representative said in a speech that Moscow was looking into whether some of the roughly $300 billion in gold reserves frozen by the West after Russia invaded Ukraine could be used for a climate damage fund for developing countries. Meanwhile, China complained about what it said was unacceptable talk about Taiwan’s participation in the talks. And a Palestinian representative denounced Israel’s war in Gaza, saying the conflict made it difficult to focus on climate change efforts. With the summit’s scheduled to end on Tuesday, government ministers from the nearly 200 countries at the Dubai summit have joined in trying to resolve the fossil fuel impasse. Climate-vulnerable countries said a rejection of a fossil fuel mention at COP28 would threaten the entire world. “Nothing puts the prosperity and future of all people on earth, including all of the citizens of OPEC countries, at greater risk than fossil fuels,” said Marshall Islands climate envoy Tina Stege in a statement.
The Marshall Islands, which faces inundation from climate-driven sea level rise, currently chairs the High Ambition Coalition group of nations pushing for stronger emissions-cutting targets and policies. To meet the global goal of holding climate warming to within 1.5 degrees Celsius above preindustrial temperatures, the coalition “is pushing for a phase out of fossil fuels, which are at the root of this crisis,” she said. “1.5 is not negotiable, and that means an end to fossil fuels.” The latest version of the negotiating text, released Friday, shows countries were still considering a range of options – from agreeing to a “phase out of fossil fuels in line with best available science”, to phasing out “unabated fossil fuels”, to including no mention at all. Germany’s climate envoy Jennifer Morgan said counties were “moving into the critical stage of negotiations”.
“It is time for all countries to remember what is at stake,” she said. “I am concerned that not all are constructively engaging.” Asked about the OPEC letter, COP28 Director General Majid Al Suwaidi avoided the term “fossil fuels” but said the United Arab Emirates, as president of the summit, wanted a deal to get the world on track to limit warming to 1.5 C. “Our COP president … clearly wants to see an outcome that is as ambitious as possible, and we believe we are going to deliver it,” he told a news conference. Speaking on behalf of the Alliance of Small Island States, Samoa’s environment minister, Cedric Schuster, worried that this year’s talks were getting bogged down by disputes. “We are extremely concerned about the pace of negotiations given the limited time we have left here in Dubai,” he told the summit from the main stage on Saturday. A target for renewables cannot be a substitute for a stronger commitment to fossil fuel phase-out and an end to fossil fuel subsidies,” he said. “COP28 needs to deliver both.” Azerbaijan looks set to host next year’s COP29 climate change summit after winning backing from other Eastern European nations, unblocking a geopolitical deadlock over the next global gathering to address climate change. Reuters
The Arab Africa Trade Bridges (AATB) Program and the Federal Republic of Nigeria formalized a partnership with the signing of the AATB Membership Agreement, officially welcoming Nigeria as the Program’s newest member country. The signing ceremony took place in Abuja on the sidelines of the 5th AATB Board of Governors Meeting, hosted by the Federal Government of Nigeria.
The Membership Agreement was signed by Eng. Adeeb Y. Al Aama, the CEO of the International Islamic Trade Finance Corporation (ITFC) and AATB Program Secretary General, and H.E. Mr. Wale Edun, Minister of Finance and Coordinating Minister of the Economy, Federal Republic of Nigeria. The Agreement will provide a strategic and operational framework to support Nigeria’s efforts in trade competitiveness, promote export diversification, strengthen priority value chains, and advance capacity-building efforts in line with national development priorities. Areas of collaboration will include trade promotion, agribusiness modernization, SME development, businessmen missions, trade facilitation, logistics efficiency, and digital trade readiness.
The Honourable Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, called for deeper trade collaboration between African and Arab nations, stressing the importance of value-added Agribusiness and industrial partnerships for regional growth. Speaking in Abuja at the Agribusiness Matchmaking Forum ahead of the AATB Board of Governors Meeting, the Minister said the shifting global economy makes it essential for African and Arab nations to rely more on regional cooperation, investment and shared markets.
He highlighted projections showing Arab-Africa trade could grow by more than US$37 billion in the next three years and urged partners to prioritize value addition rather than raw commodity exports. He noted that Nigeria’s growing industrial base and upcoming National Single Window reforms will support efficiency, investment and private-sector expansion.
“This is a moment to turn opportunity into action”, he said. “By working together, we can build stronger value chains, create jobs and support prosperity across our regions”, Edun emphasized. “As African and Arab nations embark on this journey of deeper trade collaboration, the potential for growth and development is vast. With a shared vision and commitment to value-added partnerships, we can unlock new opportunities, drive economic growth, and create a brighter future for our people.”
Speaking during the event, Eng. Adeeb Y. Al Aama, Chief Executive Officer of ITFC and Secretary General of the AATB Program, stated: “We are pleased to welcome Nigeria to be part of the AATB Program. Nigeria stands as one of Africa’s most dynamic and resilient economies in Africa, with a rapidly expanding private sector and strong potential across agribusiness, energy, manufacturing, and digital industries. Through this Membership Agreement, we look forward to collaborating closely with Nigerian institutions to strengthen value chains, expand regional market access, enhance trade finance and investment opportunities, and support the country’s development priorities.”
The signing of this Agreement underscores AATB’s continued engagement with African countries and its evolving portfolio of programs supporting trade and investment. In recent years, AATB has worked on initiatives across agribusiness, textiles, logistics, digital trade, export readiness under the AfCFTA framework, and other regional initiatives such as the Common African Agro-Parks (CAAPs) Programme.
With Nigeria’s accession, the AATB Program extends it’s presence in the region and adds a key partner working toward advancing trade-led development and fostering inclusive economic growth.
Federal Executive Council (FEC) has approved the 2026–2028 Medium-Term Expenditure Framework (MTEF), a key fiscal document that outlines Nigeria’s revenue expectations, macroeconomic assumptions, and spending priorities for the next three years. The approval followed Wednesday’s FEC meeting presided over by President Bola Tinubu at the State House, Abuja. The Minister of Budget and Economic Planning, Senator Atiku Bagudu made this known after the meeting.
The Minister said the Federal Government is projecting a total revenue inflow of N34.33 trillion in 2026, including N4.98 trillion expected from government-owned enterprises. Bagudu said that the projected revenue is N6.55 trillion lower than earlier estimates, adding that federal allocations are expected to drop by about N9.4 trillion, representing a 16% decline compared to the 2025 budget.
He said that statutory transfers are expected to amount to about N3 trillion within the same fiscal year. On macroeconomic assumptions, FEC adopted an oil production benchmark of 2.6 million barrels per day (mbpd) for 2026, although a more conservative 1.8 mbpd will be used for budgeting purposes. An oil price benchmark of $64 per barrel and an exchange rate of N1,512 per dollar were also approved.
Bagudu said the exchange rate assumption reflects projections tied to economic and political developments ahead of the 2027 general elections. He said the exchange rate assumption took into account the fiscal outlook ahead of the 2027 general elections.
The minister said that all the parameters were based on macroeconomic analysis by the Budget Office and other relevant agencies. Bagudu said FEC also reviewed comments from cabinet members before approving the Medium-Term Fiscal Expenditure Ceiling (MFTEC), which sets expenditure limits. Earlier, the Senate approved the external borrowing plan of $21.5 billion presented by President Tinubu for consideration The loans, according to the Senate, were part of the MTEF and Fiscal Strategy Paper (FSP) for the 2025 budget.
The spot rate on Nigerian Treasury bills has been increased by 146 basis points by the Central Bank of Nigeria (CBN) following tight subscription levels at the main auction on Wednesday. The spot rate on Treasury bills with one-year maturity has now surpassed Nigeria’s 16.05% inflation by 145 basis points following a recent decision to keep the policy rate at 27%.
The Apex Bank came to the primary market with N700 billion Treasury bills offer size across standard tenors, including 91-day, 182-day and 364 day maturities. Details from the auction results showed that demand settled slightly above the total offers as investors began to seek higher returns on naira assets despite disinflation.
Total subscription came in at about N775 billion versus N700 billion offers floated at the main auction. The results showed rising appetite for duration as investors parked about 90% of their bids on Nigerian Treasury bills with 364 days maturity. The CBN opened N100 billion worth of 91 days bills for subscription, but the offer received underwhelming bids totalling N44.17 billion.
The CBN allotted N42.80 billion for the short-term instrument at the spot rate of 15.30%, the same as the previous auction. Total demand for 182 days Nigerian Treasury bills settled at N33.38 billion as against N150 billion that the authority pushed out for subscription. The CBN raised N30.36 billion from 182 days bills allotted to investors at the spot rate of 15.50%, the same as the previous auction.
Investors staked N697.29 billion on N450 billion in 364-day Treasury bills that was offered for subscription. The CBN raised N636.46 billion from the longest tenor at the spot rate of 17.50%, up from 16.04% at the previous auction.
-
News3 days agoNigeria to officially tag Kidnapping as Act of Terrorism as bill passes 2nd reading in Senate
-
News3 days agoNigeria champions African-Arab trade to boost agribusiness, industrial growth
-
News3 days agoFG’s plan to tax digital currencies may push traders to into underground financing—stakeholders
-
Finance1 week agoAfreximbank successfully closed its second Samurai Bond transactions, raising JPY 81.8bn or $527m
-
Economy3 days agoMAN cries out some operators at FTZs abusing system to detriment of local manufacturers
-
News1 week agoFG launches fresh offensive against Trans-border crimes, irregular migration, ECOWAS biometric identity Card
-
News3 days agoEU to support Nigeria’s war against insecurity
-
Uncategorized3 days agoDeveloping Countries’ Debt Outflows Hit 50-Year High During 2022-2024—WBG