Business
Nigeria’s crude oil production rose to 1.35m bpd in August – OPEC
Nigeria’s crude oil production rose to 1.35m bpd in August – OPEC
Nigeria’s average daily crude oil production rose by 3.4% to 1.352 million barrels in August according to the latest data published by OPEC.
The Organisation of Petroleum Exporting Countries (OPEC) in its monthly oil market report for August reports that Nigeria’s crude oil production increased by 45 thousand barrels from 1.307 million barrels in July daily to the current figure.
The figure above is based on direct communication with Nigerian authorities on crude oil production for the month.
According to secondary sources, Nigeria’s average crude oil production in August stood at 1.448 million barrels per day- an increase of 57 thousand daily when compared to 1.391 million daily posted in the previous month.
Nigeria maintained its position as Africa’s largest oil producer by a wider margin, as Libya, its closest competitor, faced production challenges due to the shutdown of major oil fields during the month.
Oil demand and average prices in August
The report indicates that the oil cartel has revised its forecast for global oil demand growth in 2024 to 2.03 million barrels per day (bpd), down from the earlier projection of 2.11 million bpd.
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- It also lowered its 2025 global demand growth estimate to 1.74 million bpd from 1.78 million bpd.
- In August, oil prices declined across the board, as reflected in the OPEC Reference Basket (ORB), which dropped by $6.02, or 7.1%, to an average of $78.41 per barrel. The ICE Brent front-month contract fell by $5.00, or 6.0%, to $78.88 per barrel.
- Similarly, the NYMEX WTI front-month contract decreased by $5.05, or 6.3%, averaging $75.43 per barrel, while the DME Oman front-month contract declined by $5.83, or 7.0%, settling at $77.54 per barrel.
- The front-month ICE Brent/NYMEX WTI spread widened by 5¢ to $3.45 per barrel.
Crude oil supply projection for 2024 and 2025
Oil supply from non-OPEC+ countries is projected to grow by 1.2 mb/d in 2024, consistent with last month’s assessment.
- The primary drivers of this growth are expected to be the US, Canada, and Brazil. The forecast for non-OPEC+ liquids supply growth in 2025 remains unchanged at 1.1 mb/d, with the US, Brazil, Canada, and Norway leading the increase.
- Natural gas liquids (NGLs) and non-conventional liquids from countries participating in the Declaration of Cooperation (DoC) are expected to grow by approximately 0.1 mb/d, reaching an average of 8.3 mb/d in 2024, followed by an increase of around 60 tb/d to 8.4 mb/d in 2025.
- In August, crude oil production from countries involved in the DoC fell by 304 tb/d compared to the previous month, averaging around 40.66 mb/d, according to available secondary sources.
Nigeria’s crude oil production rose to 1.35m bpd in August – OPEC
Business
Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG
Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG
The National Association of Small and Medium Scale Enterprises (NASME) and financial experts have called on the Federal Government (FG) to suspend any new policy that may further impoverish Nigerians.
The unanimous call was made by respondents in separate interviews with the News Agency of Nigeria (NAN) in Ibadan on Tuesday.
The interview focused on the need to stabilise the economy as an increase in Value Added Tax (VAT) is being anticipated from 7.5 per cent to 10 per cent.
The Oyo State chairman NASME, Prince John Karunwi, said VAT, being a consumer tax, would make prices of goods and services shoot up.
According to him, the increase will deplete consumers’ purchasing power and reduce the quantity of items they can buy.
Karunwi said that the present situation had left most Nigerians without disposable income.
“The situation now is that after transportation, maybe people have little for feeding.
“If they now discover that for some certain products, the prices will go high, the demand for products that are not essential will, definitely, drop,” said the chairman.
He said the government should be patient and allow the economy to stabilise despite its drive to increase its internally generated revenue.
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An economist, Samson Olalere, said the idea to increase VAT at this point would further deepen the hardship of the common man.
According to him, people are already grumbling about the unwarranted fuel price increase and the high cost of living, as the new minimum wage increase is grossly inadequate.
He said the government should look inward and come up with ideas that would benefit the populace and reduce the hunger of common Nigerians.
“I say no to the increase in VAT. It is an abuse of the sensitivity of Nigerians,” said the economist.
Olalere wondered why the common Nigerian would be asked to sacrifice, tighten his belt, and keep faith in the government without enough consideration for him from the same government.
A financial expert, Sola Famakinwa, corroborated the opinions of others that an increase in VAT would amount to an increase in the prices of goods and services.
“There is no way the manufacturing industries would bear the cost of increased VAT; it would be passed down to the consumers.
“If what we hear about the proposed VAT increment is true, I do not think Nigerians can bear to have more burden added to their shoulders now,” Famakinwa said.
He noted that the government needed to reduce the economic hardship by introducing subsidies for necessities that directly affect Nigerians, considering that not all are government workers.
Recall that VAT was increased from 5 per cent to 7.5 per cent on Feb. 1, 2020.
However, the Presidential Committee on Fiscal Policy and Tax Reforms recently recommended an increase to 10 per cent from 2025, and to 15 per cent by 2027 or 2030.
Suspend VAT, other policies impoverishing Nigerians – SMEs tell FG
Business
Nigeria positioned to lead $7.7tn halal market – Shettima
Nigeria positioned to lead $7.7tn halal market – Shettima
Vice President Kashim Shettima has projected that Nigeria is on the path to becoming a major player in the global halal economy, which is expected to reach a market value of $7.7 trillion by 2025.
Speaking during the Halal Economy Stakeholders Engagement Programme at the banquet hall of the Presidential Villa in Abuja on Wednesday, Shettima said Nigeria’s demographic and economic size provide a strong foundation for positioning the country as a key player in the halal market.
Shettima highlighted the importance of reassessing the nation’s strengths and addressing its weaknesses to achieve this economic milestone.
He stated that the engagement with international stakeholders will help develop a comprehensive halal ecosystem and strategies that will allow Nigeria to tap into high-value global markets.
He praised the private sector for its contributions, especially in the financial sector, and called for further collaboration to deliver a robust halal economy.
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He also urged stakeholders to support the administration of President Bola Ahmed Tinubu in creating a thriving halal ecosystem.
Shettima further noted the importance of attracting international investment through summits, roadshows, and business matchmaking events, emphasising that regional trade expansion via the African Continental Free Trade Area (AfCFTA) offers Nigeria a platform to become a leading supplier of halal goods and services across Africa.
Aliyu Bunu Sheriff, the Special Assistant to the President on Export Expansion, highlighted the economic potential of the halal sector.
He explained that increasing Nigeria’s halal exports to countries in the Organisation of Islamic Cooperation (OIC) from 2% to 6% over the next four years could boost the country’s GDP by $548 million.
Senator Abubakar Kyari, Minister of Agriculture and Food Security, provided key statistics, noting that Nigeria’s domestic spending on halal products and services was approximately $107 billion in 2022.
Nigeria positioned to lead $7.7tn halal market – Shettima
Business
Fresh trouble over supply volume in Dangote refinery petrol
Fresh trouble over supply volume in Dangote refinery petrol
LAGOS — More controversy has emerged in the execution of a sale-purchase deal on premium motor spirit, otherwise known as petrol, between the Nigerian National Petroleum Company Limited, NNPCL, and Dangote Refinery.
NNPCL last weekend said Dangote could only deliver 16.8 million litres out of the 25 million litres it initially agreed with NNPC.
A source at the NNPCL also told Vanguard, yesterday that the refinery is struggling to deliver the 16.8 million litres it promised.
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But with the latest delivery figure it disclosed, Dangote must have significantly surpassed its promised delivery as well as the national demand put at over 40 million litres per day.
This also means that Dangote can make further petrol importation unnecessary.
But against the backdrop of this latest development, Vanguard learned that importation by NNPCL may have intensified with several consignments, totalling over 135 million litres, within three weeks from September 27, 2024, with the latest import arriving Friday.
This also implies a sudden excess supply of petrol barely a few days after the country was suffocated by acute shortage of the product, resulting in a sharp rise in the price.
Speaking to Vanguard on the development, the Group Chief Branding and Communications Officer of Dangote Refinery, Anthony Chiejina, stated: “We have already loaded 111 million litres of petrol and the exercise is ongoing.
“We are refining and have no reason not to load. So, loading is ongoing and we would continue to provide the product to the market.”
Fresh trouble over supply volume in Dangote refinery petrol
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