Business
Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working
Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working
Ukpe Philip
Sahara Weekly Reports That The strategies adopted by Nigeria’s wealthiest and most profitable company, the Nigerian National Petroleum Company Ltd (NNPCL) to ramp up crude oil production has again proven to be effective after a surprise 3.19 per cent growth in Nigeria’s Gross Domestic Product (GDP) which defied expert projections.
The GDP figures released by the National Bureau of Statistics (NBS) showed that the Crude Petroleum and Natural Gas (oil sector) was the fifth largest contributor to the GDP in the second quarter of 2024, accounting for 5.70 per cent of total GDP which was measured at 3.19 per cent.
The oil sector is a crucial part of the Nigerian economy and it is evident that the economy driven by growth in the oil sector and service industry is returning to the good old days when Nigeria’s GDP grew sustainably.
Since 2020, when Nigeria’s economy has slipped into recession, the oil sector has been struggling with negative growths of -8.89 per cent in 2020, -8.30 per cent in 2021 and -19.22 per cent in 2022.
But the rate of decline decelerated drastically in 2023 to -2.22 per cent in 2023 full year which signalled great relief for the economy and the country is expected to experience a full year growth in the oil sector for the first time since 2019 when the sector recorded 4.59 per cent growth.
Growth in the oil sector has a huge implication for the Nigerian GDP because the economy is an oil economy. A clear instance is that in 2020, when the sector fell -8.89 per cent, GDP also fell -1.79 per cent.
The game has changed in 2024 as efforts by the NNPC led by the Group Chief Executive Officer, Mele Kyari, to increase oil production is translating to growth in the sector and, by extension an improved GDP performance.
In the second quarter of this year, NBS measured average oil production at 1.4 million barrels per day compared to 1.22mbpd production in the corresponding period of 2023.
According to the NBS, the real growth of the oil sector in Q2 2024 was 10.15 per cent annualised, indicating an increase of 23.58 per cent points relative to the rate recorded in the corresponding quarter of 2023 where negative growth of -13.43 per cent was recorded.
This drove the sector to contribute 5.70 per cent to the total real GDP in the second quarter of 2024 which is a rise from the figure recorded in the corresponding period of 2023 when the sector accounted for 5.34 per cent of GDP.
The NBS emphatically said, “The nation in the second quarter of 2024 recorded an average daily oil production of 1.41 million barrels per day higher than the daily average production of 1.22 mbpd recorded in the same quarter of 2023 by 0.19 mbpd.”
The Petroleum Industry Act (PIA) of 2021 empowers the NNPC to ensure energy security for Nigeria through increased crude oil output among others, and this has huge implications for the economy.
Nigeria’s journey towards energy security faced great obstacles when crude oil output plummeted to 900,000 barrels per day in late 2022 due to theft, pipeline vandalism, and inadequate metering.
Consequently, the oil sector equally witnessed -19.22 percent negative growth in 2022 while the GDP growth fell to 3.10 percent compared to 3.40 percent in 2021. This showed a direct correlation between the performance of the oil sector and the GDP.
To rescue the economy which is largely dependent on oil, Kyari-led NNPC embarked on a massive campaign that united the security agencies, the NNPCL, Nigerian Upstream Petroleum Regulatory Commission and host communities to fight oil theft in the oil-rich Niger Delta.
The NNPC Ltd also awarded a pipeline surveillance contract to Tantita Security Services, which has led to the arrest of several vessels stealing Nigerian crude.
In July 2023, Tantita Security Services working in collaboration with NNPC discovered over 60 illegal connections to the trans-Escravos, trans-Forcados, and other major trunk lines by oil bunkDeltaBayelsa states.
In January 2024, the fight led to the interception of MT Kali, an illegal crude oil vessel loaded with thousands of metric tonnes of crude oil. About 20 crew members, including community collaborators, were arrested.
Another success was achieved in June 2024 as the NNPC uncovered an additional 165 illegal refineries in various locations across the Niger Delta, while 65 illegal connections were discovered and disconnected in Bayelsa and Rivers States.
In May, NNPC uncovered 122 illegal refineries at Tomble II, III, IV, Umuajuloke, Rivers State as well as Oporomor III, Eduwini, and Ajatiton in Bayelsa State, all in the Niger Delta region.
Aside from investments in oil, the NNPC has also shown commitment by investing in critical midstream gas infrastructure such as the Obiafu-Obrikom-Oben (OB3) and the Ajaokuta-Kaduna-Kano gas pipelines to boost domestic gas production and supply for power generation, industrial development and economic prosperity of the country.
Without a doubt, NNPC’s effort is helping the Nigerian government shake up the economic pressure on the government and different sectors of the economy.
As of May 2024, crude oil production rose to 1.7mbpd, according to Kyari who linked the rise in oil output to the firm’s fight against crude oil theft and vandalism as well as massive investment in the sector.
Financial analysts at United Capital Research said that due to improved crude production, net exports are expected to be the primary growth drivers, with rising oil export volumes due to improved security in the Niger Delta.
“We align with the International Monetary Fund’s (IMF) projection that Nigeria’s real GDP will increase modestly to 3.1 percent in 2024. In the oil sector, the Nigerian economy is set to benefit from favorable developments, offering positive momentum in 2024,” the firm said in a recent report.
Ukpe writes from Abuja
Alpha Morgan to Host 19th Economic Review Webinar
In an economy shaped by constant shifts, the edge often belongs to those with the right information.
On Wednesday, February 25, 2026, Alpha Morgan Bank will host the 19th edition of its Economic Review Webinar, a high-level thought leadership session designed to equip businesses, investors, and individuals with timely financial and economic insight.
The session, which will hold live on Zoom at 10:00am WAT and will feature economist Bismarck Rewane, who will examine the key signals influencing Nigeria’s economic direction in 2026, including policy trends, market movements, and global developments shaping the local landscape.
With a consistent track record of delivering clarity in uncertain times, the Alpha Morgan Economic Review continues to provide practical context for decision-making in a dynamic environment.
Registration for the 19th Alpha Morgan Economic Review is free and can be completed via https://bit.ly/registeramerseries19
It is a bi-monthly platform that is open to the public and is held virtually.
Visit www.alphamorganbank to know more.
GTBank Launches Quick Airtime Loan at 2.95%
Guaranty Trust Bank Ltd (GTBank), the flagship banking franchise of GTCO Plc, Africa’s leading financial services group, today announced the launch of Quick Airtime Loan, an innovative digital solution that gives customers instant access to airtime when they run out of call credit and have limited funds in their bank accounts, ensuring customers can stay connected when it matters most.
In today’s always-on world, running out of airtime is more than a minor inconvenience. It can mean missed opportunities, disrupted plans, and lost connections, often at the very moment when funds are tight, and options are limited. Quick Airtime Loan was created to solve this problem, offering customers instant access to airtime on credit, directly from their bank. With Quick Airtime Loan, eligible GTBank customers can access from ₦100 and up to ₦10,000 by dialing *737*90#. Available across all major mobile networks in Nigeria, the service will soon expand to include data loans, further strengthening its proposition as a reliable on-demand platform.
For years, the airtime credit market has been dominated by Telcos, where charges for this service are at 15%. GTBank is now changing the narrative by offering a customer-centric, bank-led digital alternative priced at 2.95%. Built on transparency, convenience and affordability, Quick Airtime Loan has the potential to broaden access to airtime, deliver meaningful cost savings for millions of Nigerians, and redefine how financial services show up in everyday life, not just in banking moments.
Commenting on the product launch, Miriam Olusanya, Managing Director of Guaranty Trust Bank Ltd, said: “Quick Airtime Loan reflects GTBank’s continued focus on delivering digital solutions that are relevant, accessible, and built around real customer needs. The solution underscores the power of a connected financial ecosystem, combining GTBank’s digital reach and lending expertise with the capabilities of HabariPay to deliver a smooth, end-to-end experience. By leveraging unique strengths across the Group, we are able to accelerate innovation, strengthen execution, and deliver a more integrated customer experience across all our service channels.”
Importantly, Quick Airtime Loan highlights GTCO’s evolution as a fully diversified financial services group. Leveraging HabariPay’s Squad, the solution reinforces the Group’s ecosystem proposition by bringing together banking, payment technology, and digital channels to deliver intuitive, one-stop experiences for customers.
With this new product launch, Guaranty Trust Bank is extending its legacy of pioneering digital-first solutions that have redefined customer access to financial services across the industry, building on the proven strength of its widely adopted QuickCredit offering and the convenience of the Bank’s iconic *737# USSD Banking platform.
About Guaranty Trust Bank
Guaranty Trust Bank (GTBank) is the flagship banking franchise of GTCO Plc, a leading financial services group with a strong presence across Africa and the United Kingdom. The Bank is widely recognized for its leadership in digital banking, customer experience, and innovative financial solutions that deliver value to individuals, businesses, and communities.
About HabariPay
HabariPay is the payments fintech subsidiary of GTCO Plc, focused on enabling fast, secure, and accessible digital payments for individuals and businesses. By integrating payments and digital technology, HabariPay supports innovative services that make everyday financial interactions simpler and more seamless.
Enquiries:
GTCO
Group Corporate Communication
[email protected]
+234-1-2715227
www.gtcoplc.com
Business
BUA Group, AD Ports Group and MAIR Group Launch Strategic Plan for World-Class Sugar and Agro-Logistics Hub at Khalifa Port
BUA Group, AD Ports Group and MAIR Group Sign MoU to Explore Collaboration in Sugar Refining, Agro-Industrial Development, and Integrated Global Logistics Solutions
Abu Dhabi, UAE – Monday, 16th February 2026
BUA Group, AD Ports Group, and MAIR Group of Abu Dhabi today signed a strategic Memorandum of Understanding (MoU) to explore collaboration in sugar refining, agro-industrial development, and integrated global logistics solutions. The partnership aims to create a world-class platform that strengthens regional food security, supports industrial diversification, and reinforces Abu Dhabi’s position as a hub for trade and manufacturing.
The proposed collaboration will leverage BUA Group’s industrial and logistics expertise, Khalifa Port’s world-class infrastructure, and AD Ports Group’s operational experience. The initiative aligns with the objectives of the UAE Food Security Strategy 2051, which seeks to position the UAE as a global leader in sustainable food production and resilient supply chains. It also aligns with Nigeria’s food production- and export-oriented agricultural transformation agenda, focused on scaling domestic capacity, strengthening value addition, improving post-harvest logistics, and unlocking new markets for Nigerian produce across the Middle East, Asia, and beyond.
Photo Caption: L-R: Kabiru Rabiu, Group Executive Director, BUA Group; Cpt. Mohammed J. Al Shamisi, MD/Group CEO, AD Ports Group; Saif Al Mazrouei, CEO (Ports Cluster) AD Ports Group; Abdul Samad Rabiu, Founder/Executive Chairman, BUA Group; and Steve Green, Group CFO, MAIR Group
Through structured aggregation, processing, storage, and maritime export channels, the partnership is designed to reduce supply chain inefficiencies, enhance traceability and quality standards, and also create a predictable trade corridor between West Africa and the Gulf.
BUA Group—recognised as one of Africa’s largest and most diversified conglomerates, with major investments across sugar refining, food production, flour milling, cement manufacturing, and infrastructure- brings extensive industrial expertise and large-scale operational capability to the venture. MAIR Group will provide strategic support in developing integrated logistics and agro-industrial solutions, creating a seamless platform for production, storage, and distribution.
Abdul Samad Rabiu, Founder and Chairman of BUA Group, said:
“This MoU marks an important milestone in BUA’s international expansion and reflects our long-term vision of building globally competitive industrial platforms. Together with AD Ports Group and MAIR Group, we aim to develop sustainable food production and logistics solutions that strengthen regional supply chains and support the UAE’s Food Security Strategy 2051.”
He further added that, “This partnership represents not just a commercial arrangement but a strategic food corridor anchored on shared economic ambition, resilient infrastructure, and disciplined execution, reinforcing long-term food security objectives for both nations.”
A representative of MAIR Group added:
“This collaboration underscores our commitment to advancing strategic industries in Abu Dhabi and building integrated solutions that reinforce the UAE’s position as a global hub for trade, food security, and industrial excellence.”
A spokesperson from AD Ports Group commented:
“Our partnership with BUA Group and MAIR Group highlights Khalifa Port’s role as a catalyst for high-impact industrial investments. This initiative will enhance regional food security, strengthen global trade connectivity, and support Abu Dhabi’s economic diversification goals.”
This MoU marks a historic collaboration that combines world-class infrastructure, industrial expertise, and strategic vision, setting the stage for a sustainable and resilient food and logistics ecosystem that will benefit the UAE, the region, and global markets alike.
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