The report that Nigeria’s oil production dropped by 28 million barrels between January and July 2022 and its effect on Federal Government’s N9.37tn oil and gas revenue target by the end of the year is one of the tending stories in Nigerian newspapers on Monday.
The Punch reports that Nigeria’s oil production slumped by 28 million barrels between January and July 2022, threatening the Federal Government’s N9.37tn oil and gas revenue target by the end of the year.
The Federal Government, in the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper recently presented by the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, blamed oil production shut-ins due to pipeline vandalism, crude oil theft and high petrol subsidy cost.
Most industry experts who spoke with The PUNCH on Sunday also attributed the decline to oil theft, which appears to have defied solutions.
After posting a high crude oil production figure of 1.399 million barrels per day in January 2022, Nigeria’s production crashed to as low as 1.084mbpd in July.
By dropping from 1.399mbpd in January to 1.084mbpd in July, it means the country lost about 315,000 barrels of crude oil daily, amounting to 28.4 million barrels of oil during the six months interval.
Findings by our correspondent on Sunday from various monthly oil production reports of the Organisation of Petroleum Exporting Countries indicated that Nigeria actually stepped up its output from 1.197mbpd produced in December 2021 to 1.399mbpd in January 2022.
But this could not be sustained, as the country’s oil production commenced a descent in February, dropping to 1.258mbpd and crashed further in March to 1.238mbpd.
The newspaper says that investors lost N571bn at the end of trading on the floor of the Nigerian Exchange Limited last week.
The NGX All-Share Index and market capitalisation of equities listed on the NGX depreciated by 2.09 per cent to close at 49,664.07 and N26.787tn last week.
All other indices finished lower with the exception of The NGX Insurance, NGX Consumer Goods and NGX Growth Indices which appreciated by 6.00 per cent, 3.00 per cent and 1.56 per cent while, The NGX ASeM index closed flat.
According to the NGX, 33 equities appreciated in price during the week, lower than 41 equities in the previous week.
Twenty- six equities depreciated in price higher than 22 in the previous week, while 97 equities remained unchanged higher than 93 equities recorded in the previous week.
The NGX weekly market report showed a total turnover of 1.511 billion shares worth N13.547bn in 20,074 deals was traded last week by investors on the floor of the Exchange, in contrast to a total of 705.636 million shares valued at N12.850bn that exchanged hands in previous week in 22,124 deals.
The Financial Services Industry (measured by volume) led the activity chart with 680.202 million shares valued at N4.672bn traded in 9,230 deals; thus contributing 45.02 per cent and 34.48 per cent to the total equity turnover volume and value respectively.
The Guardian reports that of the 28 assembly plants that began operations in 2014 out of the 54 companies licensed in Nigeria, only six are currently running, and at a very low capacity.
According to available data from operators in the sector, policy inconsistency, as witnessed in the non-signing of the Nigeria Automobile Industry Development Plan (NAIDP) bill into law, worsened by lack of incentive to those that invested billions in the automobile assembly project and non-provision of foreign exchange by the Central Bank of Nigeria (CBN) for settlement of letters of credit continue to compound the woes of the sector.
Data from the National Automotive Design and Development Council (NADDC) showed that 28 companies are currently assembling in Nigeria out of the 54 that registered for it.
NADDC was approved by the Federal Government to assemble semi knocked down (SKD) vehicles to encourage local production. This is after various auto assemblers have invested over $1billion into the assembly plants.
However, only six of these operators appear to be viable. Also, of the 408,870 units yearly capacity target, only 8,473 units (two per cent) have so far been achieved.
Similarly, data from the National Bureau of Statistics (NBS), in its Foreign Trade data in Goods Statistics report, showed that the import bill on used vehicles stood at N257.85 billion at the end of 2021.
In the first quarter of 2022, NBS data showed that Nigerians spent N72.3 billion on used vehicles using diesel or semi diesel engine, of cylinder capacity 2500cc at 1.23 per cent. The volume of import surpasses the amount spent locally on assembled vehicles.
The remaining assembly plants are running at about 50 per cent capacity, with the situation compounded by Nigeria’s dwindling purchasing power as a result of inflation, currency depreciation and stagnant income.
The auto policy was designed to discourage the importation of fully-built vehicles into the country, encourage local assemblers to maximise their potential, generate employment, boost skills and manpower, instill research and development, increase the nation’s Gross Domestic Products (GDP) and make Nigeria an automotive hub in West Africa and Africa in general. Despite these lofty goals, very little success has been recorded.
The newspaper says that the Federal Government, in collaboration with United Nations Development Programme (UNDP), has launched Imagine Nigeria report under a larger development framework that explores alternative pathways to develop the most populous black nation.
The initiative is a bold and unfettered look into Nigeria’s future in the coming decades rather than a national plan comprising specified projects.
Present at the event are Vice President Yemi Osinbajo, who represented the President, Minister of Finance, Budget and National Planning, Zainab Ahmed, Minister of State for Budget and National Planning, Clem Agba and Resident Representative, UNDP Nigeria, Mohamed Yahya.
Others include Senator Udoma Udo Udoma and Dr. Shamsudeen Usman.
According to Osinbajo, the project provides the licence to imagine a Nigeria freed of its past and current challenges and able to engage the future with the best possible tools in human and material capital. He added that the “ultimate objective is to answer the question of what it would take to transform Nigeria.”
It is a process of reflection and discussion by all Nigerians, especially young ones on what the future of our country should look like.”
The Vice President continued: “Imagine Nigeria proposes that Nigerians can build a more inclusive and resilient nation, overcoming prevailing challenges facing it, such as the unprecedented impact of COVID-19, diminishing oil revenue, climate change, rising cost of living, inequalities, poverty and levels of insecurity, among others.”
The report noted that Nigeria remains a major powerhouse in Africa with numerous unexplored prospects that citizens could harness for national transformation.
In his remarks the UNDP official said Nigeria’s re-imagination remains critical not only for the country but also for the African continent and the world at large.
“Imagine Nigeria is about creating a shift for a new African agenda and development narrative. It calls on Nigeria to facilitate new forms of collaboration for the country and Africa so that the continent can take its well-deserved seat in the global arena while also providing a basis for the country’s transformation.”
The Nation reports that four months after President Muhammadu Buhari ordered a refund of nomination fees to aspirants who stepped down during the All Progressives Congress (APC) March 26 consensus National Convention, the party is yet to comply.
Investigations also showed that the party is indebted to members engaged to conduct the congresses (ward to the National Convention) ahead of the 2023 general elections.
The party, in the last two months, has also failed in the payment of staff salary as at when due. June salary was paid mid July and workers only received their July pay last Friday, as against payment on the 25th of every month.
President Buhari, at March 24 meeting with eight national chairmanship aspirants, persuaded them to step down for a consensus candidate, with a promise to refund their nomination fees.
Each aspirant for party offices paid between N20 and N2.5 million for the expression of interest and nomination forms, depending on the office contested for. Investigations showed that the party raked in over N700 million from about 170 persons.
GIK/APA