The main drivers of Nigeria’s economy met with the Finance Committee of the National Assembly yesterday and declared that the ailing economy was getting revitalized based on emerging indicators.
Also, the Group Executive Officer of NNPCL, Mele Kyari, has said the Port Harcourt refinery would start production by early next month, August, which will be followed by the one in Warri months after, and Kaduna refinery latest by December this year. He was confident that based on emerging indicators in the Energy and Gas sector, Nigeria would be a net exporter of petroleum by December this year.
In a related development, the federal government has announced the immediate dispatch of a total of 740 lorry loads of rice to the 36 states of the federation and the Federal Capital Territory (FCT) to cushion the effect of food shortages across the country. Minister of Information and National Orientation, Mohammed Idris, who disclosed this yesterday to newsmen at the State House, Abuja, after the Federal Executive Council (FEC) meeting, also hinted that the federal government might amend the 2024 budget to accommodate the new minimum wage.
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However, the Senate committee meeting with the economic team of President Bola Tinubu was attended by the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun; Budget and National Planning Minister, Senator Atiku Bagudu; and Minister of State for Petroleum Resources, Senator Heineken Lokpobiri. Others were the Group Executive Officer of NNPCL, Mele Kyari; the Governor of the Central Bank of Nigeria, Mr. Yemi Cardoso; and the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, among others.
Kyari, while speaking, said in a few months from now, oil production levels for the country would hit two million barrels per day as all enablement towards that has already been put in place. Kyari said, “Mr. Chairman and members of the Joint Committee. Let me just give confirmation that 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 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 of oil production per day. I’m aware that there are several comments in the public space around the 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 the 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 presentation, the CBN governor represented by Deputy Governor (Economic Policy), Muhammad Sani Abdullahi, said the triple challenges of rising inflation, foreign exchange rate fluctuations, and food inflation would take a downward trend soonest as indicators to that effect were already emerging. Bagudu said the 2024 budget was already being implemented and that there was an ongoing negotiation with Labour Leaders on Minimum wage to ensure that there are no further disruptions to the economy. Senator Musa, on his part, appealed to Nigerians to persevere as the government was working 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, and 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 as 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 that easy 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. In order to get us out of all the trouble we have been. 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.
The federal lawmakers and their guests entered into a closed session after the initial opening remarks. The session was still ongoing as of the time of filing this report by 8 pm.
On the distribution of 740 lorry loads of rice to the 36 states of the federation and Abuja, Idris also explained that the food supply was part of Tinubu’s intervention to Nigerians, aimed at alleviating the persisting food crisis. Idris, who appealed to governors to ensure effective distribution of the food supply to the most vulnerable in society, explained further that each state, including the FCT, took delivery of 20 trucks containing 1,200 bags of 25kg of rice. According to the minister, the president had directed the Minister of Agriculture to ensure that food was made available to Nigerians. He explained that the distribution of trucks of rice was also to ensure that the hardship in the country was reduced, adding that it was expected that the governors would distribute the trucks of rice to the most vulnerable.
His words: “Now, the council deliberated on the state of affairs in Nigeria, especially the issue of food supply and shortage of food on the tables of many Nigerians, and after exhaustive deliberation, the Minister of Agriculture had earlier been directed to ensure that food is being made available to Nigerians. The understanding is that about 20 trucks of rice have already been supplied to each of the states of the federation, including the Federal Capital Territory. Each of the trucks is carrying about 1,200 bags of 25kg of rice.
This is part of the measures that the government is taking, in addition to so many others, to ensure that the hardship being experienced by Nigerians is drastically terminated. So to recap, each of the state governments has received 20 trucks of rice for onward distribution to the most vulnerable. This is a first step and the federal government will continue to support all the sub-nationals so that the hardship being experienced by most Nigerians, in terms of the shortage of food supply, is breached. It is expected that the governors will go ahead to distribute this food item to the most vulnerable so that the hardship, as I said, being experienced will be brought down significantly.”
Commenting on the issue of Compressed Natural Gas (CNG), the Minister said the matter was discussed at the FEC meeting based on the promise made by the federal government to Nigerians. According to him, “The Federal Executive Council has directed the presidential Committee on CNG to expedite its activities to supply buses, to also make it possible for the conversion kits to be available to most Nigerians. Already they have started but the federal executive council asked them to redouble their effort. So that conversion kits that we need for the CNG to populate with are made available.
Also, the conversion centers that had earlier been approved will also be significantly upgraded so that Nigerians will have more conversion centers and more conversion kits. The compliance level of CNG, the federal government has directed this should go up, so as to reduce our over-reliance on PMS. And this will in turn also aid our energy transition from fossil fuel to renewable energy. Now, in all, the Federal Executive Council took note of some of the complaints among Nigerians, some of the issues raised in terms of transportation, and in terms of food prices or food shortages in many homes around the country, and the Federal Executive Council is ramping up all that needs to be done to ensure that food is being put on the table of most Nigerians. So what the government is doing now is just a necessary first step to ensure that supplies are made available to Nigerians through the governors.
I told you earlier that 20 trucks of rice already have reached the state governors. All the governors have already taken delivery of that. And the government will continue to work to ensure that food intervention is made available. This, of course, is an addition to the effort that the government is making in terms of fertilizer supply which is already also being processed. Most of the governors will also have support. Recall that the Central Bank of Nigeria had earlier made available over 2.1 million bags of assorted fertilizer to the Ministry of Agriculture for onward distribution to the states. So that is also in progress. The federal government will do everything they can to ensure that we have more food for our people, Investments in the agricultural sector are ramped up and you also know that the Federal Ministry of Livestock Development that was announced by Mr. President also takes off very soon.
