National
NESG Advises Federal Government to Maintain 2.2mbpd Crude Oil Production for 2025 Budget Viability
Dr. Tayo Aduloju, the Chief Executive Officer of the Nigeria Economic Summit Group (NESG), has recommended that the Federal Government sustain crude oil production at a level of 2.2 million barrels per day (bpd) to ensure the feasibility of the 2025 budget.
During a media engagement in Abuja, where NESG presented its strategic vision for 2025 along with a macroeconomic outlook for the private sector, Aduloju emphasized the importance of maintaining this production level amidst historical fluctuations in Nigeria’s crude oil output. He highlighted three significant production benchmarks: 1.1 million bpd, 2.2 million bpd, and 2.8 million bpd, and their respective impacts on the national economy.
Aduloju remarked that achieving a production level of 2.2 million bpd is a realistic target, stating, “Reaching 2.2 million bpd, regardless of crude oil prices, is essential for a viable budget.” He noted that the government had successfully increased production from 1.1 million bpd to 2.2 million bpd and even to 2.8 million bpd, demonstrating that incremental growth in daily oil production is achievable.
Unveiling “The Arc of the Possible,” NESG’s strategic framework aimed at fostering Nigeria’s economic development, Aduloju reiterated that targeting 2.2 million bpd is realistic and within reach. This strategy emphasizes actionable solutions that promote growth and prosperity across key sectors in the short to medium term.
Achieving this production target, he explained, would positively influence the economy by stabilizing the foreign exchange market and increasing foreign earnings. This would also enhance government initiatives on deregulation, liberalization of the downstream sector, and effective regulatory governance.
However, Aduloju stressed the necessity of political stability for sustaining production levels. He called for immediate action to restore stability in Rivers State and continued funding for government security enhancement plans due to their critical role in national oil production and overall economic health.
He stated, “Effective implementation of stabilization reforms could potentially accelerate Nigeria’s Gross Domestic Product (GDP) growth to 5.5 percent by 2025.”
The NESG report, titled “Stabilisation in Transition: Rethinking Reform Strategies for 2025 and Beyond,” acknowledges the government’s efforts in addressing cross-sector challenges. It highlights the expected positive impacts of improved electricity supply and fuel availability, which are anticipated to reduce business disruptions, particularly for Nano, Micro, Small, and Medium Enterprises (NMSMEs), thereby enhancing productivity and economic performance.
Improved foreign exchange availability is expected to support operations in the manufacturing sector, which relies heavily on imported raw materials and intermediate inputs. In agriculture, addressing issues related to financing, storage, warehousing, and logistics will enhance sector performance.
Aduloju emphasized that the oil and gas sector remains vital for economic growth, contributing significantly to foreign exchange inflows, external balance resilience, and government revenue. He projected that the manufacturing sector would benefit from stabilization policies aimed at addressing power supply challenges and lowering input costs.
The NESG report forecasts a decline in inflation to 24.7 percent under optimal stabilization efforts, signaling improvement in the country’s macroeconomic stability. Effective coordination of fiscal and monetary policies is identified as crucial for achieving the anticipated reduction in inflation.
Aduloju noted that a relatively stable foreign exchange market, bolstered by increased supply and diminished speculative demand, will be key in curbing inflation. He highlighted that enhanced productivity across critical sectors, especially agriculture, is expected to significantly alleviate inflationary pressures in 2025.
“Increased agricultural output will enhance food supply, mitigate scarcity, and ease food price inflation, a major contributor to overall inflation in the country. Moreover, improved security in food-producing regions will facilitate better access to farmlands and supply chains, further stabilizing food prices,” he concluded.
The National Youth Vanguard of Nigeria’s ruling All Progressives Congress (APC) has rejected allegations made by Honourable Aminu Sani Jaji, who accused the Minister of State for Defence, Bello Muhammed Matawalle, of orchestrating claims of anti-party activities against him.
In a statement issued on Saturday, the group’s National Publicity Secretary, Dr Adeniyi Wale, described Jaji’s accusations as “baseless” and an attempt to distract from his own political manoeuvres.
“Jaji has long positioned himself as a loyal APC member and a unifying force within the party, but his actions suggest otherwise. His political moves appear more self-serving than focused on party unity,” Wale said.
The APC Vanguard emphasised that Nigerians deserve transparent and accountable leaders rather than those who, it said, manipulate public trust for personal gain. The group also questioned Jaji’s credibility, citing what it described as a pattern of inconsistency in his political engagements.
“The remarks made by Jaji not only lack substantiation but also raise concerns about his reliability and judgment,” the statement read. “Leadership is not merely about holding a position of power; it is about demonstrating qualities that inspire trust and confidence among the people.”
The group commended Minister Matawalle for his efforts in strengthening national security and promoting peace. It said his leadership had contributed significantly to fostering unity and improving community relations across the country.
“Minister Matawalle exemplifies the qualities of effective leadership. Under his stewardship, significant progress has been made in enhancing national security and community relations,” the statement said.
The APC Vanguard further criticised Jaji’s leadership approach, accusing him of lacking the foresight and responsibility required for credible governance.
“This pattern of inconsistency not only weakens the integrity of his decisions but also erodes the confidence of party members and stakeholders who seek dependable representation,” Wale added.
The group reaffirmed its support for Matawalle and urged APC members to remain focused on unity and national progress while rejecting divisive rhetoric that could undermine the party’s strength.
National
Nigeria Advocates for Collaborative Border Control Efforts with Sahel and West African Nations
Nigeria is seeking enhanced collaboration with Sahelian and West African nations to facilitate effective information and data sharing for improved border control measures.
During a press briefing on Tuesday at the Border Security Summit in London, Minister of Interior Dr. Olubunmi Tunji-Ojo emphasized the necessity for regional cooperation.
“There is a critical need for countries within the Sahel and West African subregions to collaborate more effectively for better international partnerships and information dissemination,” he stated.
Dr. Tunji-Ojo highlighted the importance of proactive strategies to not only address ongoing issues but to prevent future occurrences. “The major takeaway from this summit is the emphasis on proactivity rather than mere reaction, as nations increasingly aim to criminalize irregular migration.”
He described the summit as a significant opportunity for border control ministers to collaborate in safeguarding their nations’ borders.
The minister pointed out that organized immigration crimes are not confined to individual countries but are a collective issue requiring shared solutions. He reiterated the federal government’s commitment to combating border-related crimes through the implementation of effective strategies.
“Nigeria has developed a comprehensive border control solution, recognizing that we are not just a transit point. Our systems have been automated with numerous measures introduced to secure our borders and eradicate irregular migration,” he affirmed.
“We cannot afford to lose the battle before it begins, and we are confident that, through this summit, we can present a united front to effectively tackle this challenge,” Tunji-Ojo assured.
He reaffirmed Nigeria’s dedication to enhancing its immigration policies and collaborating with global partners to combat transnational crimes, including human trafficking, smuggling, and document fraud.
According to NAN, the summit convened over 30 world leaders, including UK Prime Minister Keir Starmer and Home Secretary Yvette Cooper, to address significant issues related to border control and organized immigration crime (OIC). The event served as a platform for international cooperation on migration policies, security threats, and strategies to counter illegal immigration activities. (NAN)
The Nigerian electricity sector slowed in the fourth quarter of 2024 (Q4 2024), with the electricity production index declining by 1.64% year-on-year (y-o-y).
Data from the Central Bank of Nigeria (CBN) says this marks a reversal from the 5.55% growth recorded in the third quarter of 2024 (Q3 2024).
Average estimated electricity generation rose by 2.34% to 4,206.50 megawatts per hour (MW/h) from 4,110.47 MW/h in Q3 2024.
Similarly, electricity consumption saw a modest increase of 2.63%, reaching 4,105.66 MW/h from 4,000.24 MW/h in the preceding quarter.
This is as the Nigerian economy witnessed widespread expansion in the fourth quarter of 2024 (Q4 2024), with 21 out of 22 subsectors recording positive growth.
On a quarter-on-quarter (q-o-q) basis, however, the subsector showed signs of recovery, as the index rose by 22.50% compared to a significant decline of 49.46% in the previous quarter.
The broad-based economic expansion in Q4 2024 can be attributed to several factors, including improved business confidence, increased consumer spending, and enhanced performance in key sectors such as agriculture, manufacturing, and telecommunications.
The government’s fiscal and monetary policies, aimed at stabilising inflation and boosting investment, also contributed to the positive momentum.
According to the CBN, the improvement was largely attributed to enhanced gas supply to thermal power stations and the continued implementation of the Siemens Power Project, which has positively impacted power generation, transmission, and distribution networks.
Notably, the oil and gas sector benefited from relatively stable crude oil prices and improved domestic production, which provided a boost to overall economic output.
The data also stated that the non-oil sector, particularly fintech and digital services, also played a significant role in driving economic activities.