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Nigeria to export petroleum products by Dec, says NNPCL
Nigeria’s oil industry will join the big league in December when it becomes a net exporter of refined petroleum products.
Nigerian National Petroleum Company Limited (NNPCL) Group Chief Executive Officer (GCEO), Mele Kyari, said yesterday that ahead of this, the Port Harcourt Refinery will go into full operation and petrol supply from next month.
According to him, the Warri and Kaduna refineries will follow suit by December.
On Sunday, Alhaji Aliko Dangote said the Dangote Refinery will pump petrol in commercial quantity also from next month.
These are expected to bring relief to Nigerians.
Kyari spoke when he appeared before the National Assembly Joint Committee on Finance.
He was part of the Federal Government’s finance team that shared ideas with the lawmakers on how the Executive is tackling the myriad of economic challenges.
Yesterday, the National Bureau of Statistics (NBS) put the June headline inflation rate at 34.19 per cent, pushed up by the 40.87 per cent food inflation.
Other members of the economic team at the parley led by the Coordinating Minister of the Economy Mr. Wale Edun were: Budget/National Planning Minister, Senator Atiku Bagudu; Minister of State for Petroleum Resources, Senator Heineken Lokpobiri; Central Bank of Nigeria (CBN) Governor, Dr Yemi Cardoso, represented by Deputy Governor (Economic Policy) Muhammad Abdullahi and Federal Inland Revenue Service (FIRS) Chairman, Mr. Zacch Adedeji.
Edun and Abdullahi joined the meeting during the closed-door session.
Relying on emerging indicators in the energy and gas sector, the NNPCL boss told the committee that Nigeria will become a net exporter of refined petroleum products by December.
Kyari told the committee that the Port Harcourt Refinery will start production early next month, adding that this will be followed by the one in Warri and Kaduna Refinery latest by December.
He added that in a few months, the daily crude oil production will hit two million barrels with the logistics so far put in place.
Kyari said: “NNPCL and the oil and gas industry are 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 minister has said, we will soon hit the target of two million barrels of 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.
“This country 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 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.
“We have spoken to a number of your committees that it is impossible to have the Kaduna refinery come into operation before December, it will get to December. Both Warri and Kaduna but that of Port Harcourt, will commence production early August this year.”
The CBN Deputy Governor said the triple challenge of rising inflation, foreign exchange rate fluctuations and food inflation would soon be on the reverse trend as indicators to that effect are already emerging.
Bagudu said the 2024 Budget is already being implemented and that there is ongoing negotiation with Labour leaders on the new minimum wage.
Chairman of the joint Committee, Senator Sani Musa, appealed to Nigerians to persevere “as the government is working around the clock to stabilise the economy”.
He added: “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 this meeting.
“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 is 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.
“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 to get us out of all the trouble we have been.
“The indicators are showing that the economy is doing well. Things are a bit difficult because it is not easy for inflation that has gone up to go down like that. It takes time.”
Inflation rises to 34.19 per cent
Nigeria’s headline inflation rate rose marginally by 0.24 percentage points to 34.19 per cent last month from 33.95 per cent in May.
Food inflation also increased to 40.87 per cent last month against 40.66 per cent the previous month.
The National Bureau of Statistics (NBS), in its latest report, said: “In June 2024, the headline inflation rate increased to 34.19 per cent relative to the May 2024 headline inflation rate which was 33.95 per cent.
‘’Looking at the movement, the June 2024 headline inflation rate showed an increase of 0.24 per cent points when compared to the May 2024 headline inflation rate.”
The NBS stated this in its Consumer Price Index (CPI) released yesterday.
The CPI measures the average change over time in the prices of goods and services consumed by people daily.
“On a year-on-year basis, the headline inflation rate was 11.40 per cent points higher compared to the rate recorded in June 2023, which was 22.79 per cent,’’ the report added.
However, the rate of increase (0.24 percentage points) is lower than that of May and other months.
“On a month-on-month basis, the food inflation rate in June 2024 was 2.55 per cent, which shows a 0.26 per cent increase compared to the rate recorded in May 2024 (2.28 per cent),” it said.
The NBS attributed the development to a rise in the average prices of food items.
CPI had risen from 33.20 per cent in March to 33.69 per cent in April.
Nigeria has seen 19 months of consecutive inflationary pressure, pushing the inflation rate to a 28-year high.
Many experts at Cordros Capital Group, and CardinalStone Group, had expected a gradual and sustained decline in inflation in the months ahead, with some highlighting possible disinflation from July 2024.
Financial Derivatives Company (FDC) predicted that average prices would rise further this month. It cited renewed inflationary pressure.
FDC particularly noted that imminent wage increases could trigger cost-push inflation.
President of the Association of Capital Market Academics in Nigeria, Prof. Uche Uwaleke, said recent fiscal measures by the Federal Government designed to address food shortages would manifest in a slowdown of costs.
News
FEC approves ₦47.9tn 2025 budget
By Kayode Sanni-Arewa
The Federal Executive Council, FEC, has approved a proposed national budget of ₦47.9 trillion for the 2025 fiscal year.
Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this on Thursday while briefing State House correspondents after the FEC meeting presided over by President Bola Tinubu.
This was part of the Medium-Term Expenditures Framework, MTEF, for 2025 to 2027 and in line with the Fiscal Responsibility Act of 2007.
“And equally, the fiscal objectives were conservative, because we want to ensure that we study the course much as we believe the projections will be exceeded.
“The budget size that was approved for presentation to the National Assembly in the MTEP is ₦47.9 trillion, with new borrowings of ₦9.2 trillion to finance the budget deficit in 2025,” Bagudu said.
“We need to sustain the market deregulation, commendable market deregulation of petroleum prices and exchange rate, and to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the petroleum industry act 2021 to address the significant risk to Federation.
“The Federal Executive Council approved the Medium Term Expenditure Framework and the physical strategy paper, and it will be submitted to the National Assembly.
“This is in addition to bills that are already at the National Assembly, the economic stabilization bills and tax reform bills, which we believe we will have a very, very strong growth in 2025.”
During the meeting, the FEC approved its submission to the National Assembly as required by the 2007 Fiscal Responsibility Act.
The framework projected a gross domestic product (GDP) growth rate of 4.6 percent, an exchange rate of $75 to the naira, and oil production of 2.06 million barrels per day. [Channels TV]
News
Nigeria to get 6,000 power generation by December-Power Minister vows
By Kayode Sanni-Arewa
The Minister of Power, Adebayo Adelabu, has expressed his unwavering optimism that the government will successfully meet its ambitious target of generating 6,000 megawatts of electricity by December 2024, despite the numerous challenges currently affecting the power sector.
The Special Adviser on Strategic Communication and Media Relations, Bolaji Tunji, conveyed this assurance at the fourth edition of the Power Correspondents Association of Nigeria’s annual workshop, themed “Ending the Talk, Moving the Action,” held on Thursday in Abuja.
Nigeria’s power generation currently ranges between 3,500 and 4,000 MW for a population of approximately 200 million people. For instance, on Thursday, the country’s power generation was 3,556.38 MW as of 8 am.
Earlier this year, Adelabu pledged that power generation in Nigeria would reach 6,000 MW by the end of the year, citing improvements in the sector over the past year.
However, the frequent collapse of the nation’s electricity grid and the vandalisation of towers have raised concerns about the stability of the Nigerian Electricity Supply Industry and its ability to achieve the target.
In his goodwill address, the Special Adviser emphasised that the minister’s primary focus remains on achieving the goal of increasing generation and ensuring its efficient distribution to consumers.
Tunji said, “The minister aims to achieve what seems to be an intractable goal—improving generation and ensuring that what is generated reaches the final consumers. There are challenges, but they are surmountable.
“The minister has promised that by December this year, we will reach 6,000 megawatts; yes, we still hope to get there.
“We are confident that we will get there, but we are aware of the current issues with grid collapse. Efforts are being made to resolve these problems. Day and night, teams are being dispatched to address the various issues, and we remain hopeful that we will achieve the 6,000 MW target by December.”
The Director of Renewable Energy, Sunday Owolabi, also reiterated that the government is committed to ensuring 24-hour power supply for Nigerians.
Owolabi, another representative of the minister, stressed that the government’s policies are focused on resolving the challenges facing the country’s electricity transmission, distribution, and generation sub-sectors.
“We are fully committed to transforming the country’s power sector. We are focused on ensuring that our policies are practical and sustainable. We are resolute in ensuring power supply for every Nigerian.
“The government remains fully committed to transforming Nigeria’s power sector through meaningful and actionable reforms.
“We are focused on ensuring that our policies are not only visionary but also practical, impactful, and sustainable. From the ongoing efforts to address infrastructure gaps, enhance power generation, and improve transmission networks, to vital reforms in distribution and the full implementation of the electricity market, we are resolute in our mission to improve power supply for every Nigerian.”
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Just in: Wike sends FCDA Executive Director on indefinite suspension
By Kayode Sanni-Arewa
Minister of the Federal Capital Territory, Nyesom Wike has suspended the Executive Secretary, Federal Capital Development Authority (FCDA), Engr. Shehu Hadi Ahmad indefinitely.
According to a statement on Thursday, by Lere Olayinka, Senior Special Assistant on Public Communications and New Media to the Minister of Federal Capital Territory (FCT), the suspension of Engr Hadi Ahmad is with immediate effect.
The suspended Executive Secretary has consequently been directed to hand over to the Director of Engineering Services, in the FCDA.
Meanwhile, Nyesom Wike has revealed that President Bola Tinubu ordered the construction of houses for judges in Abuja.
The former Rivers State governor said the project is part of the government’s plan to provide secure housing for judges and strengthen the judiciary’s independence.
Speaking during a media chat on Wednesday, the former Rivers Governor clarified that the housing project is not his personal initiative.
Wike explained that the housing scheme was included in the 2024 budget, approved by the National Assembly, and is not his personal decision.
He added that judges currently live in rented homes, which could make them vulnerable.
He compared this to similar projects he carried out as Rivers State governor and expressed surprise at the criticism, especially from legal professionals.
Wike insisted the project is lawful and should be welcomed as a step in the right direction.
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