Connect with us
Mele Kyari

Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working

More Videos

Published

on

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

Facebook 0 Twitter/X 0 LinkedIn0 WhatsApp0 0Shares
Continue Reading
Click to comment

Leave a ReplyCancel reply

Sports

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

Published

on

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.

Facebook 0 Twitter/X 0 LinkedIn0 WhatsApp0 0Shares
Continue Reading

Politics

BREAKING: After Historic Osun Victory, Adeleke Backs Tinubu for 2027 Re-Election

Published

on

BREAKING: After Historic Osun Victory, Adeleke Backs Tinubu for 2027 Re-Election—-Fresh from securing a second term as Osun governor under the Accord Party, Ademola Adeleke has reaffirmed his support for President Bola Tinubu’s bid for another term in 2027.

Osun State Governor Ademola Adeleke has reaffirmed his support for President Bola Ahmed Tinubu’s bid for re-election in 2027, shortly after securing another four-year term as governor of the state.

Adeleke made the declaration in his victory speech following his successful re-election in the August 15 governorship election, where he contested under the Accord Party after leaving the Peoples Democratic Party (PDP).

The governor’s renewed endorsement of Tinubu adds another significant dimension to his remarkable political journey. Adeleke won his first term as governor in 2022 on the PDP platform but subsequently moved to Accord ahead of the 2026 election, successfully defending his seat as an incumbent under his new party.

Adeleke Praises Tinubu After Election Victory

In his post-election remarks, Adeleke expressed appreciation to President Tinubu, who had called to congratulate him on his victory.

The Osun governor praised the President for what he described as his role in ensuring that democracy continued to thrive, while acknowledging Tinubu’s congratulatory gesture following the election.

Adeleke’s comments represent a notable development given the political rivalry and tensions that characterized the build-up to the Osun election.

Before the poll, the governor had repeatedly called on the Federal Government and security agencies to ensure a free, fair and peaceful election. His campaign also exchanged accusations with the APC over the conduct of the electoral process and the role of federal authorities.

Renewed Support for Tinubu’s 2027 Ambition

Adeleke’s endorsement of Tinubu for 2027 is not entirely new.

The governor had previously declared his support for Tinubu’s re-election campaign before the Osun governorship election. In June, while formally launching his Accord Party re-election campaign, Adeleke described his support for the President as “unshaken and total.”

He again reaffirmed that position after winning the Osun election, emphasizing his continued backing for the President’s second-term ambition. Vanguard and Punch both reported the governor’s renewed endorsement following his victory.

Adeleke also described Tinubu as a son of Osun, further highlighting the personal and political connection he says exists between the President and the state.

Adeleke’s Historic Political Switch

The endorsement comes just days after Adeleke achieved a major political feat by retaining the Osun governorship despite switching parties.

The governor was elected in 2022 as a PDP candidate but later abandoned the party following a prolonged internal crisis. He subsequently joined Accord and secured the party’s ticket to contest the 2026 election.

His decision created considerable political uncertainty because he was defending his position as an incumbent governor without the PDP structure that had originally brought him to power.

Adeleke ultimately overcame the challenge, winning another term under Accord and strengthening his position as one of the country’s most prominent politicians outside the traditional major-party platforms.

Tinubu Congratulates Adeleke

President Tinubu has also congratulated Adeleke on his re-election, describing the result as a reflection of the will of the people.

The President said the outcome demonstrated that democracy continues to flourish in Nigeria and urged the governor to use his renewed mandate to serve the people of Osun State.

The development creates an interesting political dynamic ahead of 2027, with Adeleke now firmly positioned as an Accord governor who is publicly supporting the incumbent President’s re-election bid.

For Adeleke, the immediate priority will be delivering on the mandate he has just received from Osun voters. But his decision to publicly back Tinubu also signals that his political calculations extend beyond the state and into the increasingly important national contest ahead of the 2027 presidential election.

After securing a historic second term under Accord, Adeleke has now turned his attention toward the next political battle — throwing his weight behind Tinubu’s bid to remain President beyond 2027.

Facebook 0 Twitter/X 0 LinkedIn0 WhatsApp0 0Shares
Continue Reading

Trending

Facebook 0 Twitter/X 0 LinkedIn0 WhatsApp0 0Shares