Oil & Energy
‘Nigeria’s Crude Oil Production’ll Recover By 2025’ … As Economy Expects Growth Rate Of 3.7%
The World Bank has projected that Nigeria’s crude oil production will recover between 2024 and 2025
It also said the Nigerian economy is expected to grow from 2.9 percent in 2023 to an average rate of 3.7 percent between 2024 to 2025.
The Bank, however, said the expected recovery would still be below assigned quota figures from the Organization of Petroleum Exporting Countries (OPEC).
In its October 2023 report, titled “Africa’s Pulse”, the World Bank stated “Oil production is projected to recover in 2024–25, but it will continue to be below the OPEC+ quota. Imports of fuel products are expected to decline as the new refinery ramps up production.
“The Nigerian economy is expected to grow from 2.9% in 2023 to an average rate of 3.7% between 2024 to 2025.
“This translates into growth per capita of 1.3% in the highlighted period, which is insufficient to reduce extreme poverty in the country.”
The Bank noted that economic growth would continue to be driven by services, trade, construction, manufacturing, and agriculture.
According to the Bank’s report at the time, the Nigerian economy is projected to experience a growth rate of 2.8% in 2023, a decline from the 3.3% recorded in 2022.
Sequel to this, it noted further that a slight acceleration was expected, with an average annual growth rate of 3% anticipated for the years 2024 to 2025.
However, these growth rates translate to a per capita growth of 0.2% in 2023 and 0.4% in 2024-2025, which is deemed inadequate for effectively reducing extreme poverty within the nation.
Conversely, the oil production sector is expected to remain constrained in 2023 due to inefficiencies and security issues, with a potential gradual recovery projected for 2024-2025.
The growth in 2023 is expected to be propelled by the industry sector, specifically supported by the mega-refinery project, with a growth rate of 5.6% on the production front.
The report further noted that the Nigerian oil sector continued to grapple with persistent challenges, particularly of crude oil theft, an act which it said does not only have a direct impact on the nation’s economy, but poses a serious threat to its energy security.
It therefore challenged the Nation’s authorities to take not just decisive, but comprehensive, measures to curb this illicit activity, ensuring the protection of valuable national resources and securing the country’s economic prosperity.
By: Lady Godknows Ogbulu
Oil & Energy
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Oil & Energy
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By Felicity Bradstock for Oilprice.com 16
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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