Critical stakeholders of Nigeria’s economy, including the Nigerian National Petroleum Company Limited (NNPCL), the Central Bank of Nigeria (CBN), and other key entities, gathered in Abuja on Monday to announce that the country’s struggling economy is showing signs of recovery based on emerging indicators.
At an important interactive session with the joint committees of the National Assembly on Finance, several key figures provided updates and assurances about the economy’s trajectory. This session included the Ministers of Finance, Wale Edun, Budget and National Planning, Senator Atiku Bagudu, Minister of State Petroleum, Senator Heineken Lokpobiri, the Group Executive Officer of NNPCL, Mela Kyari, and the Governor of the Central Bank of Nigeria, Mr. Yemi Cardoso.
In his presentation, the Group Executive Officer of NNPCL, Mela Kyari, informed the committee, led by Senator Sani Musa (APC Niger East), that based on emerging indicators in the Energy and Gas sector, Nigeria is on track to become a net exporter of petroleum by December this year.
“The indicators are very promising,” Kyari stated. “The Port Harcourt refinery is set to commence production early next month, followed by the refinery in Warri in a few months, and the Kaduna refinery by December this year.”
He further added that within a few months, Nigeria’s oil production levels are expected to reach 2 million barrels per day, as all necessary measures are being put in place to achieve this target.
“Mr. Chairman and members of the Joint Committee, let me just give confirmation that NNPCL and the oil and gas industry is very critical in bringing a turnaround in our current economic situation, and we understand the importance of this. We are taking every step that is practical for us to achieve this”.
“We have already seen growth in our oil and gas production because of certain actions that Mr. President personally took, and also the very mere truth that we have also declared a war on production activities, and this is yielding the required results”.
“The combination of these two has now seen us restoring production in our country, and we believe that, as the Honorable Minister has said, we will soon hit the target of 2 million barrels oil production per day.
“I’m aware that there are several comments in the public space around refining business and domestic production, including production that will come from the commissioned Dangote refinery.
“Yes, this country, as we have said, will be a net exporter of petroleum products by the end of this year.
“We’re very optimistic that by December, this country will be a net exporter. That means a combination of production coming from us, and also from Dangote refinery and other smaller producing companies that we know are in line to do this.
“So I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.
“Specific to NNPC refinery, we have spoken to a number of your committees, that it is impossible to have the Kaduna refinery come to operation before December, it will get to December. Both Warri and Kaduna but that of Port Harcourt will commence production early August this year,” he said.
In his own submission, the CBN Governor, represented by Deputy Governor (Economic Policy), Muhammad Sani Abdullahi, addressed the triple challenges of rising inflation, foreign exchange rate fluctuations, and food inflation. He assured the committee that these issues would soon see a downward trend, as indicators are already emerging that point to an improving situation.
Earlier in his submission, the Minister of Budget and National Planning, Atiku Bagudu, stated that the 2024 budget is already being implemented. He also mentioned that ongoing negotiations with labor leaders on minimum wage are aimed at ensuring there are no further disruptions to the economy.
In his remarks, the Chairman of the Committee, Senator Sani Musa, appealed to Nigerians to persevere as the government works around the clock to stabilize the economy.
“Our critical interactive session with you as managers of the economy is about economic growth. It’s about how we can get our policies to work. How we will support Nigerians.
“The National Assembly is very concerned because we are the representatives of the people. And we are obliged to ask what is happening. And this is the reason for the meeting.
“And we have heard from you. At least you have given us preambles of the activities going on, on how our economy can get back on track.
“You are all aware of the obstructions our economy has had in the previous years. And it’s not going to be easy that overnight, in 365 days or in one year of the coming administration, things will change. It will be gradual.
“And I believe that Nigerians will persevere. This is the only time we can all come together as Nigerians to give His Excellency the President all the needed support, in order to get us out of all the trouble we have been in.
“The indicators are showing that the economy is doing well. The only thing is that things are a bit difficult because it’s not easy for inflation that has gone up to go down like that. It takes time,” he said.
This interactive session highlighted the efforts being made by various critical stakeholders to revitalize Nigeria’s economy. The optimism expressed by the officials, backed by emerging indicators and ongoing efforts, provides hope that the country is on the path to economic recovery and stability. The collaborative approach of the NNPCL, CBN, and other entities underscores a unified commitment to addressing the challenges and achieving significant milestones in the nation’s economic development.
