Nigeria’s economic stakeholders, gathered in Abuja on Monday, declared that there are emerging signs of the revival of the ailing economy.
During an interactive session, the Joint Committee of the National Assembly on Finance received assurances from ministers Wale Edun (Finance), Atiku Bagudu (Budget and National Planning), and Heineken Lokpobiri (Petroleum), as well as NNPCL’s Group Executive Officer Mela Kyari and the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso, that efforts were being made to pull the economy out of its current challenges.
Kyari, in his presentation to the committee led by Senator Sani Musa (APC, Niger East), disclosed that Nigeria is expected to become a net exporter of petroleum by December this year, based on emerging indicators in the energy and gas sector.
He mentioned that the Port Harcourt refinery is set to commence production early next month, followed by the Warri refinery a few months later, and the Kaduna refinery by December this year.
Furthermore, he stated that the country’s oil production is projected to reach two million barrels per day in the coming months, with all necessary preparations already in place.
“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 about 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 Honourable Minister has said, we will soon hit the target of two 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 into operation before December; it will get there in December—both Warri and Kaduna—but that of Port Harcourt, will commence production early in August this year,” he said.
In his own statement, the Deputy Governor (Economic Policy) Muhammad Sani Abdullahi, representing the CBN governor, stated that the triple challenges of escalating inflation, fluctuations in the foreign exchange rate and food inflation are expected to decrease soon, as there are already emerging indicators to confirm this.
Earlier during his submission, Atiku Bagudu, the Minister of Budget and National Planning, mentioned that the 2024 budget is currently being put into action and that negotiations with labor leaders regarding the minimum wage are ongoing, to prevent further disruptions to the economy.
During his remarks, Senator Sani Musa, the committee chairman, urged Nigerians to persevere, assuring them that the government is tirelessly working to stabilise 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,” he said.
Continuing, he said: “And we have heard from you. At least you have given us preambles of the activities going on and 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.”