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Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working

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Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working—–Ukpe Philip

The strategies adopted by Nigeria’s wealthiest and most profitable company, the Nigerian National Petroleum Company Ltd (NNPCL) to ramp up crude oil production has again proven to be effective after a surprise 3.19 per cent growth in Nigeria’s Gross Domestic Product (GDP) which defied expert projections.

The GDP figures released by the National Bureau of Statistics (NBS) showed that the Crude Petroleum and Natural Gas (oil sector) was the fifth largest contributor to the GDP in the second quarter of 2024, accounting for 5.70 per cent of total GDP which was measured at 3.19 per cent.

The oil sector is a crucial part of the Nigerian economy and it is evident that the economy driven by growth in the oil sector and service industry is returning to the good old days when Nigeria’s GDP grew sustainably.

Since 2020, when Nigeria’s economy has slipped into recession, the oil sector has been struggling with negative growths of -8.89 per cent in 2020, -8.30 per cent in 2021 and -19.22 per cent in 2022.

But the rate of decline decelerated drastically in 2023 to -2.22 per cent in 2023 full year which signalled great relief for the economy and the country is expected to experience a full year growth in the oil sector for the first time since 2019 when the sector recorded 4.59 per cent growth.

Growth in the oil sector has a huge implication for the Nigerian GDP because the economy is an oil economy. A clear instance is that in 2020, when the sector fell -8.89 per cent, GDP also fell -1.79 per cent.

The game has changed in 2024 as efforts by the NNPC led by the Group Chief Executive Officer, Mele Kyari, to increase oil production is translating to growth in the sector and, by extension an improved GDP performance.

In the second quarter of this year, NBS measured average oil production at 1.4 million barrels per day compared to 1.22mbpd production in the corresponding period of 2023.

According to the NBS, the real growth of the oil sector in Q2 2024 was 10.15 per cent annualised, indicating an increase of 23.58 per cent points relative to the rate recorded in the corresponding quarter of 2023 where negative growth of -13.43 per cent was recorded.

This drove the sector to contribute 5.70 per cent to the total real GDP in the second quarter of 2024 which is a rise from the figure recorded in the corresponding period of 2023 when the sector accounted for 5.34 per cent of GDP.

The NBS emphatically said, “The nation in the second quarter of 2024 recorded an average daily oil production of 1.41 million barrels per day higher than the daily average production of 1.22 mbpd recorded in the same quarter of 2023 by 0.19 mbpd.”

The Petroleum Industry Act (PIA) of 2021 empowers the NNPC to ensure energy security for Nigeria through increased crude oil output among others, and this has huge implications for the economy.

Nigeria’s journey towards energy security faced great obstacles when crude oil output plummeted to 900,000 barrels per day in late 2022 due to theft, pipeline vandalism, and inadequate metering.

Consequently, the oil sector equally witnessed -19.22 percent negative growth in 2022 while the GDP growth fell to 3.10 percent compared to 3.40 percent in 2021. This showed a direct correlation between the performance of the oil sector and the GDP.

To rescue the economy which is largely dependent on oil, Kyari-led NNPC embarked on a massive campaign that united the security agencies, the NNPCL, Nigerian Upstream Petroleum Regulatory Commission and host communities to fight oil theft in the oil-rich Niger Delta.

The NNPC Ltd also awarded a pipeline surveillance contract to Tantita Security Services, which has led to the arrest of several vessels stealing Nigerian crude.

In July 2023, Tantita Security Services working in collaboration with NNPC discovered over 60 illegal connections to the trans-Escravos, trans-Forcados, and other major trunk lines by oil bunkDeltaBayelsa states.

In January 2024, the fight led to the interception of MT Kali, an illegal crude oil vessel loaded with thousands of metric tonnes of crude oil. About 20 crew members, including community collaborators, were arrested.

Another success was achieved in June 2024 as the NNPC uncovered an additional 165 illegal refineries in various locations across the Niger Delta, while 65 illegal connections were discovered and disconnected in Bayelsa and Rivers States.

In May, NNPC uncovered 122 illegal refineries at Tomble II, III, IV, Umuajuloke, Rivers State as well as Oporomor III, Eduwini, and Ajatiton in Bayelsa State, all in the Niger Delta region.

Aside from investments in oil, the NNPC has also shown commitment by investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.

Without a doubt, NNPC’s effort is helping the Nigerian government shake up the economic pressure on the government and different sectors of the economy.

As of May 2024, crude oil production rose to 1.7mbpd, according to Kyari who linked the rise in oil output to the firm’s fight against crude oil theft and vandalism as well as massive investment in the sector.

Financial analysts at United Capital Research said that due to improved crude production, net exports are expected to be the primary growth drivers, with rising oil export volumes due to improved security in the Niger Delta.

“We align with the International Monetary Fund’s (IMF) projection that Nigeria’s real GDP will increase modestly to 3.1 percent in 2024. In the oil sector, the Nigerian economy is set to benefit from favorable developments, offering positive momentum in 2024,” the firm said in a recent report.
Ukpe writes from Abuja

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SHOCKING !! Oluyin Of Iyin-Ekiti In DSS Net Over Alleged Suspicious Demand for Governor’s Used Chair

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SHOCKING !! Oluyin Of Iyin-Ekiti In DSS Net Over Alleged Suspicious Demand for Governor’s Used Chair

 

The Department of State Services (DSS) has invited the Oluyin of Iyin-Ekiti, Oba Adeniyi Adeola Ajakaiye, for questioning after he made a quiet but suspicious demand for the chair used by Ekiti State Governor, Biodun Oyebanji during a thanksgiving service at Babamuboni Memorial Anglican Church, Iyin-Ekiti.

According to leaked correspondences exchanged between Babamuboni Anglican Church and Oluyin’s Palace, Governor Oyebanji had attended an event on May 31, 2026 at the invitation of Senate Leader, Michael Opeyemi Bamidele, an indigene of Iyin-Ekiti few days to the state’s gubernatorial election.

How Oluyin of Iyin-Ekiti Strangely Demanded Governor’s Seat

It was gathered that after the church program, the Oluyin of Iyin Ekiti, Oba Ajakaiye quietly and specifically requested for the chair which the Governor sat on during the church program.

The church’s Vicar who suspected a mischief by the Oluyin’s palace politely declined the estranged and bizzare request.

According to the church, the decline made Oba Oluyin furious who immediately influenced the untimely transfer of the church’s vicar, Ven. Dr. Samuel Sunday Agunbiade from the church.

The Palace, in a letter addressed to the church , insisted that the governor’s seat be surrendered for “royal custody and appropriate traditional rites.”

In the said letter from the Oluyin-in-Council to the church, they strangely said that “the replacement chair to be commissioned henceforth shall be placed under strict and adequate guard at all times, to avert any future desecration or recurrence of such grave oversight against the sanctity of the stool.”

Meanwhile, the request which has been described as barbaric and bizarre in Nigeria’s political and religious history, immediately raised suspicion and outrage within the community.

The Position of the Anglican Church

The Anglican Church, in its formal reply, rejected the demand, stressing that church property is held in trust under ecclesiastical governance. It further explained that the chair no longer existed, having already been dismantled and incorporated into the altar furnishing.

According to the church, “Consequently, the Church is not at liberty to surrender, transfer, or remove dedicated Church property for external purposes outside the procedures prescribed by ecclesiastical authority.

“As custodians of these properties, we are duty-bound to preserve and administer them in accordance with the doctrine, discipline, and governance of the Church.”

REQUEST FOR THE REMOVAL OF THE CHURCH CHAIR TO THE PALACE nnnnn_040357

Despite the stance of the church to strictly adhere to its ecclesiastical responsibilities and constitutional obligations, the palace persisted.

Outrage in Iyin-Ekiti as Residents React

Residents of Iyin-Ekiti alleged that the monarch’s insistence was not cultural but sinister with claims that the chair might be for ritual manipulation against the governor whom at the time was preparing for his re-election.

They noted that the DSS invitation to the Oluyin underscores how seriously the security agency views the matter stressing that there are sinister motive behind the estranged act.

It was equally gathered that the fallout extended to the church leadership. Ven. Dr. Agunbiade, the vicar who stood firm against the palace’s demand, was transferred under circumstances widely perceived as punitive.

Residents noted that while governors, presidents, and dignitaries have attended church services across Nigeria and Ekiti State in particular for decades, never has a demand been made for their chairs to undergo “traditional rites.”

They described the incident as mischievous while calling for a thorough investigation by the DSS to unravel the mystery and sinister motives behind the bizzare request of the monarch.

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JUST IN: Maresca Suffers Arsenal Defeat Again as Manchester City Lose Community Shield 3–0

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JUST IN: Maresca Suffers Arsenal Defeat Again as Manchester City Lose  Community Shield3–0—-Enzo Maresca’s competitive debut as Manchester City manager ends in disappointment as Arsenal cruise to victory in Cardiff and lift the Community Shield.

Enzo Maresca’s first competitive match in charge of Manchester City ended in a nightmare as Arsenal swept aside the FA Cup holders 3–0 to claim the 2026 Community Shield at the Principality Stadium in Cardiff.

The defeat means Maresca has suffered another setback against Arsenal, having previously faced the Gunners during his time at Chelsea. But this loss will carry particular significance, coming in his first competitive game since taking over from Pep Guardiola at City.

Calafiori Strikes Inside 24 Seconds

Arsenal needed less than a minute to take control.

Riccardo Calafiori opened the scoring after just 24 seconds, finishing from Myles Lewis-Skelly’s delivery to give Mikel Arteta’s side a dream start. It was reported as the fastest Community Shield goal in 58 years.

The early goal immediately put City under pressure and gave Arsenal confidence as they looked to exploit the uncertainty surrounding Maresca’s new-look side.

Havertz Doubles Arsenal’s Lead

Arsenal continued to dominate and eventually doubled their advantage in the 28th minute.

Kai Havertz found the net after goalkeeper Gianluigi Donnarumma failed to deal convincingly with the situation, leaving Arsenal with a commanding 2–0 lead before half-time.

City struggled to generate a sustained attacking response, with Arsenal’s defensive organisation limiting the opportunities available to Erling Haaland and Phil Foden.

Ødegaard Completes the Rout

The Gunners completed the victory early in the second half when captain Martin Ødegaard added a third goal.

Christos Tzolis was involved in another Arsenal attacking move, while Ødegaard produced a composed finish to effectively put the contest beyond City’s reach.

Arsenal’s defence then held firm to preserve a clean sheet and secure a convincing victory.

A Nightmare Start for Maresca

The result could hardly have been more difficult for Maresca.

The Italian was appointed as Guardiola’s successor after City entered a new era following the Spaniard’s departure. The Community Shield represented Maresca’s first competitive opportunity to demonstrate that he could lead the club back to the top of English football.

Instead, Arsenal exposed several weaknesses in his team, particularly in defensive organisation and their ability to control the match after falling behind.

Maresca had previously said one of his ambitions at City was to close the gap on Arsenal, who finished as Premier League champions last season. His first competitive meeting with the Gunners therefore provided an immediate test of that ambition.

Arsenal Send Early Warning

For Arteta and Arsenal, the victory provides an early statement ahead of the new Premier League campaign.

The Gunners looked sharp, aggressive and confident, while their new additions and returning players fitted smoothly into Arteta’s system.

The Community Shield does not determine the Premier League title race, but Arsenal’s performance will undoubtedly strengthen belief among their supporters that the champions are ready to defend their crown and compete for further silverware.

For Maresca, however, there is now plenty of work to do.

Manchester City’s new era has begun with a heavy defeat, while Arsenal have already sent a clear message to their rivals: they are ready for another fight at the top.

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