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Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working 

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CSOs say oil crooks behind fresh blackmail, smear campaign against Kyari

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.

 

 

Growth In Oil Sector GDP Contribution Shows NNPC Strategies Working 

 

 

 

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

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DNA: Medical errors, inaccuracies in genetic testing, and baby exchange, among others responsible For Paternity Errors

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DNA: Medical errors, inaccuracies in genetic testing, and baby exchange, among others responsoble For Paternity Errors

DNA: Medical errors, inaccuracies in genetic testing, and baby exchange, among others responsible For Paternity Errors

 

 

Following recent DNA reports about paternity discrepancies, psychologists have linked  paternity fraud, where children do not belong to their supposed fathers to medical errors, inaccuracies in genetic testing, and baby exchange, among others

The mental health experts noted that several variables could lead to a situation where a child’s paternity was questioned, beyond the common blame on infidelity.

According to them, factors such as negligence, ignorance, and genetic testing errors could also contribute to this phenomenon.

They spoke exclusively with PUNCH Healthwise amid growing concern about paternity fraud, with increasing reports revealing that many children have been falsely attributed to men who are not their biological fathers.

 

 

In recent years, Nigeria has witnessed a disturbing trend of paternity fraud, where children are discovered not to belong to their supposed fathers.

This phenomenon has left many families in shock, with some marriages ending in divorce due to the discovery.

While infidelity is often linked to the primary cause of paternity fraud, psychologists, however, said there could be other factors at play.

 

Speaking with our correspondent, the experts said there was a need for couples to explore all options available before jumping to conclusions that the women cheated in the relationship.

While identifying the lack of pre-marital genetic testing as one of the factors that could be responsible, the mental health experts noted that prospective parents overlook the importance of comprehensive genetic screening, which could reveal potential issues before marriage.

 

They stressed that ignorance or negligence in this area might contribute to unexpected outcomes later in life.

 

A clinical psychologist at Lagos University Teaching Hospital, Dr Juliet Ottoh stressed the importance of exploring multiple factors before jumping to conclusions about infidelity.

Ottoh noted that while infidelity is often presumed to be the primary cause of paternal discrepancies, other significant factors could play a role.

She said these include the negligence of medical staff, inaccuracies in genetic testing, and even hospital errors such as baby exchanges.

Ottoh emphasised the necessity of thorough investigation, including verifying the results of genetic tests through reputable labs before making any assumptions about paternal identity.

 

“It is not always entirely the couple’s fault. Sometimes, it might just be a result of test errors, ignorance, or negligence. We’ve heard stories of babies being exchanged in hospitals due to negligence, leading to paternity issues,” she stated.

She further said, “There are a lot of factors that may be responsible for this. And that is why you must explore extensively to look at out for what are some of these factors.

“Sometimes, it is not entirely the couple’s fault, it might just be as a result of test, ignorance. In recent times, how many people still go to do genetic tests before marriage? Also, some of these genetic tests are queried.

“So, it is not entirely to say that one person is responsible for all these. Sometimes it is negligence. We have heard stories of where a lot of babies were born in the same hospitals and out of negligence, some of the babies were exchanged and they became a problem for their parents.

“We cannot entirely say it is infidelity that is the cause of all these paternal fraud cases. Before you label a situation, you must take a lot of detailed history to understand where the problem is coming from.

“For me, I will say you just ensure you go to the right lab. As it is, you can even try to get a second opinion from another good lab to ascertain your genotype before you venture into marriage.  If you have all of those sorted, then we can begin to query the other options. The most important thing you just get tested and confirm your genotype from a reputable lab.

“There are a lot of implications in marriages when these things come out. Partners need to be patient and understand what the problems truly are. If they understand that, they would be able to amend amicably.”

The psychologist stressed that genetic testing was crucial in such situations but advised couples to seek second opinions from reputable labs to confirm their genotypes before marriage.

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WHY IS PETROLEUM A PROBLEM IN NIGERIA

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NNPC cautions motorists, others against panic buying

WHY IS PETROLEUM A PROBLEM IN NIGERIA

By Dickson Omobola

 

The jigsaw puzzle surrounding the quantity of petrol, otherwise called Premium Motor Spirit (PMS), Nigeria consumes daily just got more puzzling as Sunday Vanguard understands that the figure went down to about 30 million liters per day after President Bola Tinubu’s ”subsidy is gone” statement of May 29, 2023 only to dramatically return to more than 60 million liters.

Multiple sources attributed the ‘magical’ rise to renewed smuggling of the product into neighboring countries where the price of the product is significantly higher than it is in Nigeria.

Until Tinubu ‘removed’ petrol subsidy via the 2023 Inauguration Day speech, the product sold for N254 but rose subsequently to N617 in Abuja and thereabouts in some parts of the country.

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In Lagos where it was cheapest, it sold for about N568 while it sold higher in other South-West states like Ogun, Oyo, Ondo, Osun and Ekiti.

In the North, South-South and South-East, it was a different ballgame as the price of petrol skyrocketed above N615 while independent marketers sold above N800.

The quantity of petrol consumed daily in Nigeria has for a long time been a controversial issue with many stakeholders saying it was shrouded in secrecy especially since the quantity determined the amount to be paid as subsidy which many people including government officials benefited from.

According to the Nigerian National Petroleum Corporation Limited (NNPCL), in the first three months of 2022, Nigeria recorded an average daily consumption of 64.14 million liters, while the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) revealed in September 2022 that Nigeria’s average daily petrol consumption was 66.8 million liters.

However, at the beginning of 2023, the Group Chief Executive Officer of the NNPC Limited, Mele Kyari, said there was no credible data to ascertain the daily consumption of petrol in Nigeria while also stating that there was credible data on the actual volume of petrol evacuated from the depots.

Analysts believe the figures quoted are often that high because the bulk of the petrol earmarked for the local market is usually taken by smugglers across the borders, especially to neighboring countries, where the price of the product is very high because they don’t produce oil.

The smuggling of the product across the borders guarantees huge profits for those involved while subsidy also guarantees huge returns for marketers and government officials among others in the system.
But following the Inauguration Day pronouncement of Tinubu (subsidy is gone), daily consumption of petrol in Nigeria, according to sector regulator fell significantly.

Analysis of daily truck-out data published by the NMDPRA revealed that petrol consumption had reduced by more than 24 million liters per day on average.

The average daily consumption in May 2023 was 69.54 million liters which fell to 49.48 million liters in June, representing a 28.3% drop.

In July, this margin increased further to 34.61%, the equivalent of 24.06 million liters, and average daily consumption for the month fell further to 45.74 million liters.

The price of petrol in neighboring Benin Republic and Cameroon immediately soared, confirming the claim that both countries, among others, were befitting from the Nigerian subsidy regime.

Outside beneficiaries
Part of the reason adduced by the Nigerian government to cancel the subsidy regime is the fact that apart from the cabal using the regime to rip off government, nationals of neighboring were also beneficiaries.

But critics say the fact that government cannot police its borders in such a way that smuggling of petrol across the borders is stopped does not justify ending the subsidy regime that helps poor Nigerians to modulate the prices of other items that they need petrol to carry out.

Nigeria’s land borders are huge, covering an

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Popular Businessman decries media bullying over property in Ogun

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Popular Businessman decries media bullying over property in Ogun

An Ogun State -based real estate practitioner, Mathew Elisha has condemned what he described as media bullying in an attempt by a man to forcefully take over his land in the Ologede community in Atan area of Ado- Odo / Ota Local Government .

The business man stated this ,while reacting to a viral video on the internet ,where he was accused of forcefully taking over a community land ,which was dedicated for the construction of a primary school .

One of the residents , Olalekan Abatan accused Mathew of erecting a structure on the land ,where the community was planning to build a primary school

The real estate practitioner described the accusation against him as untrue and malicious ,adding that it was aimed at inciting the public against him.

 

He clarified that ” To begin with ,the land they are talking about is not in Igbele Ajana .It is in Ologede .It will be wrong for them to say that the land was given to them by the Ogedengbe family . ”

He also stated that ” I am very disappointed in the said Abatan. Already he had instituted a case at the Customary Court. Why is he resorting to media blackmail again .

He had initially reported to the police and after thorough investigation by the Divisional Crime Officer in charge of the station .He abandoned the matter at the police station and ran to the court .Now he has resorted to media blackmail .”

Mathew explained that ” I bought the land a long time ago from the Solabi Family . I started construction and I had three courses already on the land .
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The land became a subject of litigation between the Solabi Family and the Asalu family . The Asalu Family won at the high court and I stayed away from the land .

The Solabi Family approached the Appeal Court and the matter was decided in their favour The family also won at the Supreme Court . I returned to my land .Nothing had been built on it. I am surprised that they are claiming that the land was donated for primary school .

Abatan even confirmed to the police that there was already a construction on the land ,when it was donated to them. He added that the Ogedengbe family claimed to have erected the building on the land .”

The businessman noted that ” What they are saying is not only untrue but a malicious attempt by the said Abatan to incite members of the public against me .

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