Oil production soars to 1.6mbpd, petrol use drops 30% – NNPCL

NNPC records N18.4 billion profit in Q1 2023
NNPC records N18.4 billion profit in Q1 2023

Mele Kyari, the Group Managing Director (GMD) of the Nigerian National Petroleum Company Limited (NNPCL), made a significant announcement recently, revealing that Nigeria’s oil production has surged to 1.6 million barrels per day, a stark contrast to the previous output of less than one million barrels per day just a few months ago.

This announcement took place during a media briefing held by Olawale Edu, the Minister of Finance and Coordinating Minister of the Economy, in Abuja.

Plans to attract Nigerian funds, and clarification on $3 billion deal

Kyari also highlighted a notable decline in petrol consumption, with a 30 percent reduction attributed to President Bola Tinubu’s removal of fuel subsidies.

According to Kyari, this decrease in fuel demand has consequently led to a corresponding 30 percent reduction in NNPCL’s foreign exchange requirements for fuel imports.

During the briefing, Minister Edu unveiled an ambitious plan by the Tinubu administration to attract Nigerian funds held in domiciliary accounts both domestically and abroad in order to revitalize the economy.

Kyari clarified that the $3 billion deal with the African Export-Import Bank (AFREXIM) was not a loan but a forward sale arrangement, dispelling any notions that it had collapsed.

Minister Edu emphasized the significant foreign exchange potential held by Nigerians, both within the country and overseas, underlining the importance of creating an environment that encourages the repatriation of these funds for investment in the Nigerian economy, rather than foreign economies.

Edun expressed, “We need to provide the environment that brings those funds home for investment in the Nigerian economy.”

Additionally, Minister Edu touched upon the palliatives provided by the federal government in response to the removal of the petrol subsidy, revealing that only a fraction of the allocated N5 billion grant/loan to each state, specifically N2 billion, has been released.

He explained that funds were being gradually disbursed to prevent inflationary pressures and maintain economic stability.