The Nigerian National Petroleum Company Limited (NNPC) has restated its commitment to ensuring the free flow of Petroleum Motor Spirit (PMS) otherwise known as petrol across Nigeria.
Mr Mele Kyari, the Managing Director of NNPC, disclosed this at the unveiling of the Association of Distributors and Transporters of Petroleum Products in the nation’s capital, Abuja on Thursday, 24th March.
The NNPC boss, who was represented by Adeyemi Adetunji, the Chief Executive Officer Downstream, NNPC Tower, also revealed that the company has over 1.6 billion litres of petrol in stock for consumption of Nigerians nationwide.
Mr Adeyemi Adetunji, said: “NNPC as of today has 1.6 billion litres of PMS which is about 27 days sufficiency. This is to assure Nigerians again that there is an adequate supply of PMS and it is getting to all nooks and crannies of Nigeria. We will continue to ensure that we facilitate the availability of PMS. I appreciate all Nigerians for all their patience and cooperation as we get back to normalcy in terms of petroleum products distribution in the country. After the challenge, we had in January and the global environment for energy got worsened with the crisis in Ukraine and Russia, NNPC will do its best alleviate the plight of Nigerians.”
In the last few weeks, Nigerians have been battling with fuel scarcity, increase in electricity tariffs, high duty fees and unclear economic policy by the President Muhammadu Buhari led administration. Consumer prices rose to a record-high of 15.7% in February to compel the central bank-led monetary policy to leave rates unchanged in order to rein in prices without addressing the fundamental issues hampering the nation’s growth.
NNPC, the sole importer of petroleum products that was blamed for importing adulterated fuel that knocked vehicle engines and worsen the plight of Nigerians, has now promised to put an end to fuel scarcity.
In his statement to newsmen, Adetunji also pointed out that the company is working with a number of stakeholders to provide palliatives for Nigerians even as the Minister of State for Petroleum Resources, Chief Timipre Sylva, represented by the Director of Human Resources in the ministry, Mr Famous Asiegbu, also challenged stakeholders in the Industry to make petroleum products available for citizens.
The current scarcity of fuel is one that has lingered since late February and while there are a number of underlying reasons that have led to this, stakeholders have reiterated that oil theft in the country is one of the major setbacks that affect the availability of fuel in the country.
Federal Government Halts Cooking Gas Export to Lower Local Prices
In a bid to stabilize domestic prices and meet rising demand for cooking gas within Nigeria, the Federal Government has announced a temporary halt on the exportation of Liquefied Petroleum Gas (LPG), commonly known as cooking gas.
This decision follows a significant surge in the cost of cooking gas, which has placed a strain on consumers across the country.
According to reports, the halt in LPG export aims to increase the availability of the commodity within Nigeria’s borders, thereby reducing its local price.
The move is part of broader efforts to address the challenges faced by consumers grappling with the high cost of living.
In recent years, the demand for cooking gas has steadily increased in Nigeria, driven by urbanization, population growth, and a shift towards cleaner energy sources.
However, despite being a major producer of LPG, Nigeria has struggled to meet its domestic demand due to insufficient local production and distribution infrastructure.
Data from the Nigerian Midstream Downstream Petroleum Regulatory Authority reveals that while the total consumption of cooking gas in Nigeria has been on the rise, the country has relied heavily on imports to bridge the supply gap.
The recent decision by the government underscores its commitment to prioritizing the domestic market and ensuring that Nigerians have access to affordable cooking gas.
Consumers have been grappling with escalating prices, with reports indicating a significant increase in the cost of refilling a 12.5kg cylinder of cooking gas in major cities like Abuja, Lagos, and Kano.
The decision to halt LPG exports signals a proactive measure by the government to mitigate the adverse effects of rising prices and alleviate the financial burden on households across the nation.
Manufacturing Sector Records 7.70% Quarter-on-Quarter Growth in Q4 2023
In the fourth quarter of 2023, Nigeria’s manufacturing sector grew by 7.70% year-on-year, according to the National Bureau of Statistics (NBS).
The surge in growth reflects a significant uptick from the preceding quarter and underscores the resilience of the manufacturing industry amid economic challenges.
This growth trajectory indicates positive momentum and signals potential opportunities for economic recovery and development.
The manufacturing sector, comprising thirteen key activities ranging from oil refining to motor vehicles and assembly, demonstrated notable dynamism across various subsectors.
This growth surge is attributed to increased production, enhanced operational efficiencies, and strategic investments across the manufacturing value chain.
Despite facing headwinds such as supply chain disruptions and regulatory uncertainties, the sector’s robust performance underscores its pivotal role in driving economic diversification, job creation, and industrialization efforts in Nigeria.
Moving forward, sustaining this growth momentum will require continued policy support, investment in infrastructure, and efforts to address key bottlenecks hindering the sector’s expansion.
By fostering an enabling business environment and promoting innovation and technology adoption, Nigeria’s manufacturing sector can further catalyze inclusive economic growth and contribute significantly to the nation’s development agenda.
Nigeria’s GDP Grows by 3.46% in Q4 2023, Driven by Services
Nigeria’s Gross Domestic Product (GDP) grew by 3.46% in the fourth quarter (Q4) of 2023 on the back of robust performance of the services sector, according to data released by the National Bureau of Statistics (NBS).
The GDP expansion though slightly lower than the 3.52% recorded in the same period of 2022, reflects a positive trajectory for the Nigerian economy amid ongoing challenges.
The growth rate surpassed the 2.54% recorded in the preceding quarter, indicating a rebound in economic activity.
The services sector emerged as the key driver of growth expanding by 3.98% and contributing 56.55% to the overall GDP.
This sector’s resilience underscores its pivotal role in Nigeria’s economic landscape, encompassing diverse industries such as telecommunications, finance, and real estate.
Also, the agriculture sector experienced growth, expanding by 2.10% compared to the same period in 2022.
Meanwhile, the industry sector recorded a notable improvement, growing by 3.86%, a stark contrast to the -0.94% contraction observed in the fourth quarter of 2022.
On an annual basis, Nigeria’s GDP expanded by 2.74% in 2023 compared to 3.10% in the previous year, reflecting sustained but moderated growth.
The positive trajectory in GDP growth reflects resilience in the face of various economic challenges.
However, sustaining and accelerating growth will require continued efforts to address structural bottlenecks, foster investment, and promote inclusive economic policies across sectors.
Nigeria’s Oil Sector Growth
During the fourth quarter of 2023, Nigeria’s oil sector posted a real growth rate of 12.11% year-on-year, signifying a significant improvement from previous periods.
This was driven by the surge in average daily oil production to 1.55 million barrels per day (mbpd), a positive shift in the sector’s performance.
Despite challenges such as global market fluctuations and production constraints, the oil sector contributed 4.70% to the nation’s total real GDP in Q4 2023.
Nigeria’s Non-Oil Sector
Nigeria’s non-oil sector sustained growth momentum, posting a 3.07% real growth rate in Q4 2023.
This growth was primarily attributed to key industries including finance, telecommunications, agriculture, manufacturing, and construction.
Accounting for 95.30% of the nation’s GDP in the same quarter, the non-oil sector continues to drive economic diversification efforts and reduce dependence on oil revenues.
Despite facing challenges, such as infrastructure deficits and regulatory bottlenecks, the sector’s resilience underscores its pivotal role in fostering sustainable economic development and inclusive growth agendas.
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