The Group Managing Director, Nigerian National Petroleum Corporation (NNPC), Mele Kyari has lamented over the continued importation of petroleum products into the country.
Kyari said this at the Nigeria International Petroleum Summit 2020 in Abuja. According to him, NNPC has assets worth over $20 billion and if looked into, Nigeria has opportunities it can explore in order to produce more petroleum products.
While describing NNPC as the largest corporation in Africa, Kyari said, “We have assets that are in excess of $20bn. We have opportunities that we share with our partners.
“This country can provide energy for the whole of Africa. As we all know, 90 per cent of the petroleum products consumed in Africa are imported, and that must stop. And to do this, Nigeria must work. Our refineries must come back, and that is what we are doing.”
Also present at the event was the President, Muhammadu Buhari who was represented by the Secretary to the Government of the Federation, Mr Boss Mustapha.
[READ MORE: NNPC refineries dormant for 3 months)
Speaking on the work being done in the oil and gas sector, Buhari said extensive work had been done for the eventual passage of the Petroleum Industry Bill to open up the oil and gas sector to competitiveness. He assured foreign oil companies of high returns on their investments in Nigeria.
The President stressed the fact that investments by foreign delegates were highly welcomed and secured.
He said, “Nigeria is ready and accessible for investments from all interested countries, individuals, partners. Let me assure our foreign delegates here present, that your investments are well secured in Nigeria and a high return on investment is assured.”
While commenting on the Nigerian Gas Transportation Network Code, which was launched during the event, Buhari said, “We are all aware of the great role the hydrocarbon industry plays in the economy of Africa. Thus, we cannot afford to compromise its technical, operational and financial standards.
“This is the reason why this administration has consistently promoted sector reforms aimed at the entrenchment of transparency in the conduct of the industry’s business, cost reduction, efficiency and attracting investments in the oil and gas value chain.”
Price Watch: Nigerians paid less for Kerosene in December 2020
NBS Report shows that consumers paid less for Kerosene in December than they did in November 2020.
The latest National Bureau for Statistics (NBS) Price Watch report for the month of December 2020 indicates that the average price per litre paid by consumers for National Household Kerosene reduced by 0.17% from N353.38 in November 2020 to N352.79 in December 2020.
Also according to the report, the average price per gallon paid by consumers for National Household Kerosene reduced by 3.52% from N1,218.50 in November 2020 to N1,175.59 in December 2020.
Price variations across states
- In the month of December 2020, States with the highest average price per litre of kerosene include; Benue (N436.81), Ebonyi (N425.83) and Taraba (N423.33).
- However, consumers in Bayelsa (N235.95), Rivers (N302.04) and Delta (N307.69) enjoyed the lowest average price per litre of kerosene.
- Consumers in Kebbi (N1,534.21), Nasarawa (N1,488.00) and Benue (N1,450.00) paid the highest average price per gallon of kerosene.
- While consumers in Sokoto (N733.33), Bayelsa (N773.75) and Adamawa (N822.00) on the other hand, paid the lowest average price per gallon of kerosene.
Prices across zones
- Consumers in South-East zone paid the highest average price for a litre of Kerosene (N377.53), followed by North East (N370.13), North West (N354.66), North Central (N354.44) while consumers in South West(N337.57) and South South (N325.96) paid the lowest average price for a litre of Kerosene.
- In respect of the average price paid for a gallon of Kerosene, consumers in North West zone paid the highest (N1,197.54), followed by North Central (N1,305.68), South East (N1,220.66), while consumers in South West (N1,161.00), North East (N1,113.25) and South-South(N1,037.60) paid the lowest average price of a gallon of kerosene.
Why this matters
Kerosene has remained an important source of energy for cooking for most families, both in the rural areas and cities. Kerosene is mostly used in rural areas as a source of lighting.
Considering that food and lighting are very essential to life, it is therefore important that the price paid for Kerosene is quite reasonable and as well as affordable for most Nigerians.
Transport Fare Watch: Commuters by bus journey intercity paid more in December 2020
NBS report indicates that commuters paid more for bus journey intercity in December 2020 than they did in November 2020.
The average fare paid by commuters for bus journey intercity increased by 4.98% from N2,240.66 in November 2020 to N2,532.19 in December 2020, according to the National Bureau of Statistics (NBS) report for the month of December 2020.
According to the report, commuters in Abuja FCT (N4,415.73), Sokoto (N3,255.20), and Lagos (N3,250.60) paid the highest bus journey fare intercity while commuters in Bayelsa (N1,550.73), Bauchi (N1,600.70), and Akwa Ibom (N1,700.54) paid the lowest bus journey fare intercity.
Other key highlights of the report…
- The average airfare paid by air passengers for specified routes single journey increased by 0.42% from N36,301.74 in November to N36,454.59 in December 2020.
- Passengers from Anambra (N38,700.00), Lagos (N38,550.00), Cross River (N38,500.00) paid the highest airfare were while passengers from Akwa Ibom (N32,600.00), Sokoto (N33,500.00), and Gombe (N34,750.00) paid the lowest airfare.
- The average fare paid by commuters for bus journeys within the city increased by 6.18% from N333.86 in November 2020 to N354.49 in December 2020, according to the National Bureau of Statistics(NBS) report for the month of December 2020.
- Commuters in Zamfara (N600.50), Bauchi (N526.30), and Cross River (N458.07) paid the highest bus journey within the states whiles commuters in Abia (N200.50), Anambra (N242.23), and Borno (N243.12) paid the lowest bus journey fare within the city.
- The average fare paid by commuters for journey by motorcycle per drop increased by 6.14% from N276.38 in November 2020 to N293.36 in December 2020.
- Commuters in Niger (N1,575.70), Yobe (N397.45) and Imo (N397.42) paid the highest journey fare by motorcycle per drop while commuters in Adamawa (N80.40), Katsina (N130.25) and Kebbi (N146.25) paid the lowest journey fare by motorcycle per drop.
- The average fare paid by passengers for waterway transport increased by 0.19% from N756.84 in November 2020 to N758.27 in December 2020.
- Passengers in Delta (N2,300.35), Bayelsa (N2,240.00) and Rivers (N2,200.00) paid the highest fare by waterway passenger transport while passengers in Borno (N240.73), Gombe (N293.24) and Kebbi (N349.64) paid the lowest fare by water way passenger transport.
Why this matters
Cost of transportation has been noted to account for the huge chunk of the budget for most lower/middle-class Nigerians and as well takes not less than 20% of their take-home pay packages.
The increase in transport cost for the month of December 2020 may not be unconnected with the yuletide seasons that come with an unusually high cost of goods and services.
Productivity-enhancing reforms is required for quick economic recovery – World Bank
Productivity-enhancing structural reforms key to quick economic recovery.
The World Bank has revealed that a slow recovery of the global economy is not an inevitability and can be avoided through productivity-enhancing structural reforms.
This is contained in the Bank’s flagship report – Global Economic Prospects.
The Bank believes structural reforms are capable of offsetting the pandemic’s scarring effects and lay the foundations for higher long-run growth. It agrees that the global economy appears to be emerging from one of its deepest recessions and beginning a subdued recovery, beyond the short term economic outlook, following the devastating health and economic crisis caused by COVID-19.
According to the report, policymakers face formidable challenges — in public health, debt management, budget policies, central banking, and structural reforms, as they try to ensure that this still-fragile global recovery gains traction and sets a foundation for robust growth and development.
- Growth in Nigeria is expected to resume at 1.1% in 2021 – markedly weaker than previous projections – and edge up to 1.8% in 2022, as the economy faces severe challenges.
- Investment is projected to shrink again this year in more than a quarter of economies – primarily in Sub-Saharan Africa (SSA), where investment gaps were already large prior to the pandemic.
- Growth in Sub-Saharan Africa is expected to rebound only moderately to 2.7% in 2021 – 0.4% point weaker than previously projected, before firming to 3.3% in 2022.
- Relative to advanced economies, disruptions to schooling have, on average, been more prolonged in emerging market and developing economies (EMDEs), including in low-income countries.
What the World Bank is saying
- “In the longer run, a concerted push toward productivity-enhancing structural reforms will be required to offset the pandemic’s scarring effects.
- “The intended productivity-enhancing structural reforms encompass promoting education, effective public investment, sectoral reallocation, and improved governance. Investment in green infrastructure projects can provide further support to sustainable long-run growth while also contributing to climate change mitigation.”
Are we ready to adjust structurally?
The World Bank has identified key areas that could trigger quick economic recovery. A close look at events in the country appears to suggest that we may be far from ready in terms of adjusting structurally.
A cursory look at the structural adjustment areas suggested by the Bank indicates that in Nigeria, for example, and maybe elsewhere, the single most important factor is improved governance.
All other factors appear to be contingent on this, as the Bank admits that improved governance and reduced corruption can lay the foundations for higher long-run growth. Policymakers and politicians in the country are therefore advised to pay close attention to activities geared towards reduced corruption and improved governance.
Another key area is public investment. Even though most public enterprises and related establishments are usually plagued with corporate governance problems, there are several ways by which the problems could be curtailed.
The issue of education, especially tertiary education, has been problematic with governments failing to meet the demands of university unions, resulting in strikes, almost on a yearly basis. It is hoped that a lasting solution to this springs forth soon.