Headlines
Nigeria’s Low Crude Oil Production Barely Enough to Cover Petrol Imports, Finance Minister Ahmed Says
By Derrick Bangura
Nigeria’s low crude oil production means the country is barely able to cover the cost of imported petrol from its oil and gas revenue, the Minister of Finance, Budget and National Planning, Zainab Ahmed said on Thursday.
Ahmed, who said this in an interview with Reuters, at the World Economic Forum in Davos, said she hoped Nigerian oil production would average 1.6 million barrels per day (BPD) this year, up from around 1.5 million BPD in the first quarter.
The government had budgeted 1.8 million BPD of production, Ahmed said, blaming crude theft and attacks on oil infrastructure for the shortfall.
“We are not seeing the revenues that we had planned for,” Ahmed said. “When the production is low it means we’re … barely able to cover the volumes that are required for the (petrol) that we need to import.”
Nigeria exports crude oil and imports refined petrol, suffering intermittent fuel shortages. It faces double-digit inflation and low growth, amid a shrinking labour market and mounting insecurity.
A plan to abolish its petrol subsidy was scrapped ahead of national elections in February 2023 and recently, President Muhammadu Buhari got the National Assembly to approve N4 trillion for subsidies in 2022, up from the N400 billion initially projected for the purpose, putting pressure on the budget.
Nigeria raised $1.25 billion via a Eurobond sale in March at a premium rate and had planned to issue another bond.
But Ahmed said the government had “not seen a good opportunity to go in.”
The country’s deficit is set to rise to 4.5 per cent of its Gross Domestic Product this year due to the fuel subsidy, up from an original estimate of 3.42 per cent in the budget.
After holding the Monetary Policy Rate constant at 11.5 per cent for about two and a half years, the MPC on Tuesday, raised the benchmark interest rate by 150 basis points to 13 per cent in response to global inflationary pressures, which had continued to hurt economies around the world. Inflation in Nigeria rose to 16.82 per cent in April, the highest in eight months.
Commenting on the interest rate hike, Ahmed said the central bank move was necessary.
Meanwhile, the U.S. Federal Reserve’s interest rate hikes, including a 50 basis-point rise earlier this month, alongside Russia’s war in Ukraine and coronavirus lockdowns in China have prompted a move from riskier emerging markets to safe-havens.
“We are certainly very, very concerned,” Ahmed said of the Fed’s policy tightening. “The actions that the Fed or the central bank in Europe take will affect us.”
President Bola Tinubu, on Tuesday arrived in Katsina to receive the remains of the former President Muhammadu Buhari, who passed away in London on Sunday at the age of 82.
Just hours before the burial of former President Muhammadu Buhari, heartfelt tributes have continued to pour in from beneficiaries of his many charitable deeds, with many describing him as a man who never turned his back on the needy.
Speaking to the News Agency of Nigeria (NAN) on Tuesday, Aminu Daura, a respected community elder, recalled how Buhari consistently provided foodstuffs during Ramadan for families, friends, widows, and orphans in his hometown.
“He never made noise about it, but many homes had food on their tables during fasting period because of him,” Daura said.
Abdullahi Sani, a physically-challenged man who received a tricycle from the Buhari Foundation in 2021, was overcome with emotion while speaking to NAN.
“I can move around and feed my family today because of Baba Buhari. I pray to Allah to reward him for giving hope to people like me,” he said, in tears.
Hajiya Fatima Yahaya, another resident, remembered Buhari’s acts of kindness during festive seasons.
“Even after he left office, his aides ensured that the usual support still reached us every year. He always remember his people,” she said, referring to his distribution of Sallah rams and food items to indigent families during Eid celebrations.
Other residents of Daura also shared memories of how the late former president quietly paid school fees and medical bills for struggling families, actions rarely publicized.
“Some of us benefited from his silent interventions. He was a true father and a great figure in the society,” said Ali Saidu.
On Monday night, Imams across various mosques in Daura held special Qur’anic recitations, praying for the forgiveness of Buhari’s sins and his eternal peace.
The Chief Imam of Daura Central Mosque, Sheikh Musa Kofar Barau, described Buhari as a humble leader whose legacy of service and compassion would remain alive in the hearts of the people.
Buhari is scheduled to be buried later on Tuesday in his hometown of Daura, Katsina State, in line with Islamic rites. The community is bracing to welcome thousands of mourners from across Nigeria and beyond.
His Majesty King Mohammed VI of Morocco has extended heartfelt condolences to President Bola Tinubu, the family of the late former President Muhammadu Buhari, and the entire Nigerian people following Buhari’s death.
In a message of sympathy, the Moroccan monarch described the passing of the former Nigerian leader as a “sad occurrence,” expressing deep sorrow over the loss.
King Mohammed VI hailed Buhari as “an illustrious leader who worked untiringly to serve his country’s best interests and lead his people toward further progress and prosperity.”
He added: “Our thoughts and prayers are with you and the bereaved. I share your grief and want you to know how much I appreciated the working sessions I had with the deceased.”
Reflecting on their bilateral engagements, the king noted that his collaboration with Buhari led to the launch of promising development projects, “ushering a new era grounded in friendship and close cooperation between our two sister nations.”
Tinubu arrives Katsina to receive Buhari’s body for burial
“He Never Turned His Back on the Needy” — Tributes Pour In Ahead of Buhari’s Burial
King Mohammed VI Mourns Buhari, Praises Legacy of Nigeria’s Former Leader
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