Oil & Energy
‘Oil, Gas Contribute 5.34% To Nigeria’s GDP In Q2/2023’
Nigeria’s oil and gas sector has been said to have contributed a mere 5.34 percent to the country’s Gross Domestic Product (GDP).
This is down from the figure recorded in the corresponding period of 2022 and down from the preceding quarter, where it contributed 6.33percent and 6.21percent respectively.
The National Bureau of Statistics (NBS) revealed this in it’s latest GDP Report last Friday.
According to the report, in the second quarter of 2023, Nigeria recorded an average daily oil production of 1.22 million barrels per day (m/bpd), lower than the daily average production of 1.43 m/bpd recorded in the same quarter of 2022 by 0.22 m/bpd and lower than the first quarter of 2023 production volume of 1.51 m/bpd by 0.29mbpd.
The report stated further that in Q2/2023, real growth of the oil sector was –13.43percent (year-on-year), indicating a decrease of 1.66 percent points relative to the rate recorded in the corresponding quarter of 2022 (-11.77percent).
Growth also decreased by 9.22percent points when compared to Q1 2023 which was –4.21percent.
Meanwhile, on a quarter-on-quarter basis, the oil sector recorded a growth rate of -14.12percent in Q2 2023.
Note that Nigeria’s Gross Domestic Product (GDP) grew by 2.51percent(year-on-year) in real terms in Q2 2023.
This growth rate is lower than the 3.54% recorded in the second quarter of 2022 and may be attributed to the challenging economic conditions being experienced.
The NBS report further stated that the Mining and Quarrying sector consists of Crude Petroleum and Natural Gas, Coal Mining, Metal ore and Quarrying, and other Minerals sub-activities.
This sector, it said grew nominally by -7.11% (year-on-year) in Q2 2023.
Metal Ores exhibited the highest growth rate of all the sub-activities at 186.40%, followed by quarrying and other minerals activity at 60.83%.
Crude Petroleum and Natural gas was the main contributor to the sector with a weight of 85.80percent in Q2 2023.
Comparing Q2 2023’s rate of growth relative to Q2 2022 and Q1 2023 growth rates, there was a decline of 56.86percent points and a fall of 3.59percent points respectively.
The Mining and Quarrying sector contributed 6.58percent to the overall GDP in the second quarter of 2023, lower than the contributions recorded in 2022 second quarter at 8.20 percent and lower than the previous quarter at 6.73percent.
In real terms, the Mining and Quarrying sector grew by –12.16percent (year-on-year) in the second quarter of 2023. Compared to the same quarter of 2022 and the first quarter of 2023, it was lower by 1.07percent points and lower by 8.20% points respectively.
According to the NBS report, in real terms, the sector grew by 6.10percent in Q2 2023, an increase from the growth rate of -11.48percent recorded in the same quarter of 2022.
When compared to the immediate past quarter, there was a decrease of 3.43percent points from 9.53percent recorded.
On a quarter-on-quarter, the sector grew at a rate of 251.72percent. The contribution of this sector to real GDP in the second quarter of 2023 was 0.71percent, higher than the 0.69 percent recorded in Q2 2022.
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Oil & Energy
Delta Targets 120MW Power Boost, Moves To Cut Reliance On National Grid
The State Commissioner for Works (Rural Roads) and Public Information, Charles Aniagwu, disclosed this at a press conference in Asaba, weekend, noting that the initiative was part of wider reforms aimed at opening up the power sector to private investors.
Aniagwu, who was accompanied by the Executive Assistant to the Governor on New Media, Felix Ofou, said the state was exploring alternative sources of electricity to support businesses, households and communities while reducing pressure on the national grid.
He said the government was particularly interested in exploiting Delta’s abundant natural gas resources for power generation, pointing to the Kwale Free Trade Zone, which is part of the state’s special economic zone, as a major opportunity for investors.
According to him, prospective investors were taken to the zone during the state’s recent economic summit to enable them to assess the availability of gas as a key raw material for electricity generation. ComparePower Rates
The commissioner explained that generating more electricity locally would not only increase supply in Delta but also free up power on the national grid for use by other consumers.
Aniagwu cited the 8.5MW Independent Power Plant located behind the state secretariat in Asaba as an example of what could be achieved through alternative power sources.
He said the facility had enabled the secretariat complex to operate independently of the national grid, thereby making the electricity that would otherwise have been consumed there available to other users.
He added that the planned 120MW partnership with Supply Power would further strengthen the state’s electricity supply capacity and provide a more reliable power base for small and medium-sized enterprises.
Aniagwu said the state government was also intervening in areas traditionally regarded as the responsibility of electricity distribution companies because inadequate power supply could no longer be allowed to constrain economic development. LearnQuantum Physics
He identified the extension of the electricity grid from Abraka towards the Ndokwa axis as one of the interventions being undertaken to connect more communities to electricity.
The commissioner, however, raised concerns over the burden placed on communities that are often required to provide transformers and other electricity infrastructure, only for distribution companies to take over the facilities and subsequently collect electricity bills without adequately accounting for the investments made by the communities.
He said the state would continue to support efforts aimed at energising communities, noting that improved electricity supply would stimulate businesses, create jobs and help tackle social problems associated with unemployment and idleness.
On regulation, Aniagwu said the government was working with the Ministry of Energy and a committee set up to develop an appropriate regulatory framework for the state’s emerging power sector. SwitchEnergy Plans
He said the proposed energy commission would be responsible for regulating new electricity producers, determining appropriate tariffs and overseeing distribution networks.
The commissioner stressed that liberalising the sector required effective regulation to protect consumers and investors, adding that decisions on power distribution infrastructure, including the use of overhead or underground lines, must take into account the peculiarities and safety requirements of each location.
He warned that power expansion without adequate regulation could expose residents to electrocution and other hazards, stressing the need to protect electricity infrastructure while ensuring consumers were not subjected to unfair pricing.
Aniagwu said the state government’s broader objective was to build an efficient and sustainable electricity market driven by private investment and capable of powering businesses, households and communities across Delta State.
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