The International Monetary Fund (IMF) has raised doubt over the veracity of Nigeria’s daily fuel consumption numbers released by the Nigeria National Petroleum Commission (NNPC).
NNPC has consistently claimed that Nigeria uses about 66 million litres of fuel every day.
The multilateral financial institution further called for a comprehensive audit of the Nigeria National Petroleum Company.
In a publication titled “2022 Article 1V mission in Nigeria” released by the IMF, the Fund noted that there seem to be some inconsistencies with the annual financial report of the government-owned petroleum company.
The Fund, therefore, recommended a “closer look at the nature of NNPC’s financial commitments to the government and the costing details of the fuel subsidy, including through a financial audit”.
It would be recalled that Investors King reported in September 2022 that NNPC claimed Nigeria now uses up to 66 million litres of petrol per day, despite lifting about 98 million litres of fuel per day. A situation the Nigerian Customs Service (NCS) described as unreasonable.
According to the Customs comptroller-general, Hameed Ali, during a session with the House of Representatives Committee on Finance, it makes no sense that NNPC lifts 98 million liters of fuel daily when Nigerians used 66 million litres of fuel a day.
“If we are consuming 60 million liters of PMS per day by the corporation computation, why would you allow the release of 98 million liters per day? If you know this is our consumption, why would you allow that release?” Mr. Ali asked.
Meanwhile, the IMF also advised the Nigerian government to implement a stronger cash management policy to plug various loopholes and entrench fiscal responsibility.
The multilateral financial institutions added that such measures will assist the government to reduce the fiscal deficit, reduce borrowing and enhance service delivery.
“Stronger cash management and better coordination among key public institutions is needed to increase the realism of budgetary forecasts and reduce reliance on central bank overdrafts,” IMF noted.
Nigeria’s Untapped Coffee Sector Holds the Key to $2 Billion Annual Revenue
Amidst declining foreign reserves and the need for alternative revenue streams, Nigeria’s overlooked coffee industry emerges as a potential powerhouse capable of contributing over $2 billion annually to foreign exchange earnings.
Industry experts emphasize the necessity for strategic investments and modernized farming practices to unlock the full economic potential of the coffee sector.
While Nigeria is not among the top 10 coffee producers in Africa, the country’s untapped coffee industry holds the promise of significant financial gains, job creation, and sustainable agricultural development.
The urgency for revitalization comes as Nigeria grapples with a decline in foreign reserves, dropping from $38.25 billion in September 2022 to $33.23 billion in the third quarter of 2023.
Salihu Imam, Chairman of the National Coffee and Tea Association of Nigeria, Oyo State, highlighted the global significance of coffee, stating, “Coffee is the second most traded/valuable of all commodities and first in Agricultural commodities in the world.”
The potential economic impact extends beyond immediate financial gains, with Nigeria positioning itself as a key player in the global coffee trade.
Despite its potential, Nigeria’s coffee exports remain modest, producing less than one million bags annually.
In contrast, Ethiopia, the largest coffee exporter in Africa, is projected to produce 8.25 million bags. Experts suggest that Nigeria, with its unique coffee varieties, could generate $2 billion annually.
Segun Lary-Lean, President of the West Africa Specialty Coffee Association, emphasized the robust global demand for coffee, comparing it to water in Western countries.
He noted the significant earnings of coffee-producing nations like Brazil, Colombia, Vietnam, and Kenya, which experienced a 17% increase in coffee earnings.
In a call to action, industry players urge the Federal Government to prioritize strategic investments, modernized farming practices, and value-added processing to harness the coffee sector’s full economic benefits.
Unlocking the potential of Nigeria’s coffee industry stands not only as a financial opportunity but as a catalyst for broader economic growth and diversification.
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