Nigeria’s Economy Will Recover Soon, NNPCL, CBN, Minister Assure Nigerians

•Kyari says PH refinery will start production in August  

•FG distributes 740 trucks of rice to states, FCT to address food shortage 

•Govt to amend 2024 budget to accommodate new minimum wage, Idris discloses

Deji Elumoye and Sunday Aborisade in Abuja

The main drivers of Nigeria’s economy met with the Finance Committee of the National Assembly yesterday and declared that the ailing economy was getting revitalised based on emerging indicators.

Also, the Group Executive officer of NNPCL, Mele Kyari, has said the Port Harcourt refinery would start production by early next month, August, which will be followed by the one in Warri months after, and Kaduna refinery latest by December this year.

He was confident that based on emerging indicators in the Energy and Gas sector, Nigeria would be net exporter of petroleum by December this year.

In a related development, the federal government, has announced the immediate dispatch of a total of 740 lorry loads of rice to the 36 states of the federation and the Federal Capital Territory (FCT) to cushion the effect of food shortage across the country.

Minister of Information and National Orientation, Mohammed Idris, who disclosed this yesterday to newsmen at the State House, Abuja, after the Federal Executive Council (FEC) meeting, also hinted that the federal government might amend the 2024 budget to accommodate the new minimum wage.

However, the senate committee meeting with the economic team of President Bola Tinubu was attended by the Minister of Finance and Coordinating Minister of the Economy, Mr  Wale Edun;  Budget and National Planning Minister,  Senator Atiku Bagudu and Minister of State for Petroleum Resources, Senator Heineken Lokpobiri.

Others were the Group Executive Officer of NNPCL , Mele Kyari;  the Governor of Central Bank of Nigeria, Mr Yemi Cardoso; and the Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, among others.

Kyari, while speaking, said in a few months from now, oil production level for the country, would hit two million barrels per day as all enablement towards that has already been put in place.

Kyari said, “Mr. Chairman and members of the Joint Committee. Let me just give confirmation that NNPCL and the oil and gas industry is very critical in bringing a turnaround in our current economic situation, and we understand the importance of this. We are taking every step that is practical for us to achieve this.

“We have already seen growth in our oil and gas production because of certain actions that Mr. President personally took, and also the very mere truth that we have also declared a war on production activities, and this is yielding the required results.

“The combination of these two has now seen us restoring production in our country, and we believe that, as the Honorable Minister has said, we will soon hit the target of  2 million barrels oil  production per day.

“I’m aware that there are several comments in the public space around refining business and domestic production, including production that will come from the commissioned Dangote refinery.

“Yes, this country, as we have said, will be a net exporter of petroleum products by the end of this year.

“We’re very optimistic that by December, this country will be a net exporter. That means a combination of production coming from us, and also from Dangote refinery and other smaller producing companies that we know are in line to do this.

“So I can confirm to you, Mr. Chairman, that by the end of the year, this country will be a net exporter of petroleum products.

“Specific to NNPC refinery. We have spoken to a number of your committees that it is impossible to have the Kaduna refinery come to operation before December, it will  get to December.

“Both Warri and Kaduna but that of Port Harcourt , will commence production early August this year,” he said.

In his presentation, the CBN governor represented by Deputy Governor (Economic Policy), Muhammad Sani Abdullahi, said the triple  challenges of rising inflation, foreign exchange rate fluctuations and food inflation, would take downward trend soonest as indicators to that effect were already emerging.

Bagudu said the 2024 budget was already being implemented and that there was an ongoing negotiation with Labour Leaders on Minimum wage to ensure that there is no further disruptions to economy.

Senator Musa, on his part, appealed to Nigerians to persevere as government was working around the clock to stabilise the economy.

“Our critical interactive session with you as  managers of  the economy, is about economic growth. It’s about how we can get our policies to work. How we will support Nigerians.

“The National Assembly is very concerned because we are the representatives of the people. And we are obliged to ask what is happening. And this is the reason for the meeting.

“And as we have heard from you, at least, you  have given us  preambles  of the activities going on. On how our economy can get back to track.

“You are all aware of the obstructions our economy have had in the previous years. And it’s not going to be that easy overnight, in 365 days or in one year of the coming administration, things will change. It will be gradual.

“I  believe that Nigerians will persevere. This is the only time we can all come together as Nigerians to give His Excellency the president,  all the needed support. In order to get us out of all the trouble we have been.

“The  indicators are showing that the economy is doing well. The only thing is that things are a bit difficult because it’s not easy for an inflation that has gone up to go down like that. It takes time,” he said.

The federal lawmakers and their guests entered into a closed session after the initial opening remarks. The session was still ongoing as of the time of filing this report by 8pm.

FG Distributes 740 Rice Trucks to States, FCT

On the distribution of 740 lorry loads of rice to the 36 states of the federation and Abuja,  Idris, also explained that the food supply was part of Tinubu’s intervention to Nigerians, aimed at alleviating persisting food crisis.

Idris, who appealed to governors to ensure an effective distribution of the food supply to the most vulnerable in the society explained further that each state, including the FCT, took delivery of 20 trucks containing 1,200 bags of 25kg of rice.

According to the minister, the president had directed the Minister of Agriculture to ensure that food was made available to Nigerians.

He explained that the distribution of trucks of rice was also to ensure that the hardship in the country was ameliorated, adding that it was expected that the governors would distribute the trucks of rice to the most vulnerable.

His words: “Now, the council deliberated on the state of affairs in Nigeria, especially the issue of food supply and shortage of food on the tables of many Nigerians and after exhaustive deliberation, the Minister of Agriculture had earlier been directed to ensure that food is being made available to Nigerians.

“The understanding is that about 20 trucks of rice has already been supplied to each of the states of the federation, including the Federal Capital Territory. Each of the trucks is carrying about 1,200 bags of kg rice.

“This is part of the measures that government is taking, in addition to so many others, to ensure that the hardship being experienced by Nigerians is drastically ameliorated.

“So for recap, each of the state governments has received 20 trucks of rice for onward distribution to the most vulnerable. This is a first step and the federal government will continue to support all the sub-nationals, so that the hardship being experienced by most Nigerians, in terms of shortage of food supply, is breached.

“It is expected that the governors will go ahead to distribute this food item to the most vulnerable so that the hardship, like I said, being experienced will be brought down significantly.”

Commenting on the issue of Compressed Natural Gas (CNG), the Minister said the matter was discussed at the FEC meeting based on the promise made by the federal government to Nigerians.

According to him, “The Federal Executive Council has directed the presidential Committee on CNG to expedite its activities to supply buses, to also make it possible for the conversion kits to be available to most Nigerians.

“Already they have started but the federal executive council asked them to redouble their effort. So that conversion kits that we need for the CNG to populate with is made available.

“Also the conversion centers that had earlier been approved will also be significantly upgraded so that Nigerians will have more conversion centers, more conversion kits.

“The compliance level  of CNG, the federal government has directed this should go up, so as to reduce our over reliance on PMS. And this will in turn also aid our energy transition from fossil fuel to renewable energy.

“Now, in all, the federal executive council took note of some of the complaints among Nigerians, some of the issues raised in terms of transportation, in terms of food prices or food shortages in many homes around the country and the federal executive council is ramping up all that needs to be done to ensure that food is being put on the table of most Nigerians.

“So what government is doing now is just a necessary first step to ensure that supplies are made available to Nigerians through the governors. I have told you earlier that 20 trucks of rice already have reached the state governors. All the governors have already taken delivery of that.

“And the government will continue to work to ensure that food intervention  is made available. This, of course, is an addition to the effort that government is making in terms of fertilizer supply which is already also being processed. Most of the governors will also have support.

“Recall that the Central Bank of Nigeria had earlier made available over 2.1 million bags of assorted fertilizer to the Ministry of Agriculture for onward distribution to the states. So that is also in progress.

“The federal government, will do everything they can to ensure that we have more food for our people, Investments in the agricultural sector is ramped up and you also know that the Federal Ministry of Livestock Development that was announced by Mr. President, also takes off very soon.

“So these are some of the measures and some of the discussions that we had at the federal executive council meeting today. We hope that council meeting also continues next week,” Idris said.

The Federal Executive Council also mandated the Minister of Budget and Economic Planning, Alhaji Abubakar Bagudu, to come up with an amendment bill to the 2024 Budget to be presented to the National Assembly for legislation.

The planned amendment to the national budget, he explained, became necessary as a result of new fiscal developments, including the impending new national minimum wage.

According to the minister, President Tinubu is expected to hold a follow-up meeting with leaders of the organised Labour this Thursday after which the proposed amendment bill to the budget would be passed on to the National Assembly for consideration.

The president had last Thursday met with the leadership of the organised labour over the minimum wage issue.

While the government team and the organised private sector had offered N62,000, the organised labour made a demand of N250,000.

Idris further explained: “Now, you are also aware that last week, the Nigerian Labour Congress met with Mr. President. This was part of the consultations that the president was doing. Recall that he had met the organised private sector.

“He had also met the sub-nationals after the tripartite committee on labour submitted its report, in order to ensure that there is a thorough analysis of the situation, so the government will come up with a minimum wage that works for all Nigerians, the federal government, the sub-nationals and organised private sector. That was also discussed today.

“Government has also directed the Ministry of Budget to also come up with additional support for the 2024 Budget so that any differential or any gaps that will exist in terms of what existed before the 2024 Budget was approved and the Supplementary Budget and also what the requirement is for now.

“So government is working round the clock to ensure that it comes up with a minimum wage, like I said, that works for all Nigerians at the end of the day. This, of course, will be submitted to the National Assembly so that it can have legislative backing.

“Let me also say that the president is also open to meeting the Nigerian Labour Congress, the Trade Union Congress and all the affiliates. We expect that meeting to hold this coming Thursday. Recall that this was already what the Labour unions requested during their meeting with Mr. President last week.

“So, the president is in agreement. He knows that the Labour wants to quickly finalise this issue of minimum wage and government is also anxious to put the issue of minimum wage behind it.

“So it is expecting that the Nigerian Labour Congress, Trade Union Congress and all their affiliates, as requested by them last week, will meet the president on Thursday and after which the president will now transmit whatever the final agreements or what his views are on the tripartite committee’s report to the National Assembly for legislation,” Idris said.

Asked to shed more light on the proposed bill to be sent to the National Assembly with regards to the budget, he said, “There has been talks about, some people are saying there’s multiple budgets and all that.

“It is not the case and that is why the Minister of Budget has been asked to submit this additional information to the National Assembly to make it take an informed position on most of these.

“An amendment (act) to be sent to the National Assembly. Of course it is the tradition of the executive to allow the National Assembly to unveil some of these things and that is why we don’t want to go into further details.

“I’m sure the National Assembly, once it gets budget… they will do that. The executive is always respectful of the tradition of the National Assembly in terms of their protocol.”

On possible figures for the proposed new national minimum wage, Idris said there was no discussion around figures, explaining that the issues guiding the discussion were around the fact that whatever came out as the final figures would have to be considerate of other salary paying entities, which informed the president’s ongoing consultations.

He said: “I think it is the general parameters and the general principle of the minimum wage itself and like we have said here several, the federal government is not in opposition to wage increase. The President and the Federal Executive Council and the federal government are not in opposition to the concept of wage increase.

“The issue has been a wage increase that we can defend, meaning a wage increase that will not lead to inflation, a wage increase that not just the federal government, but the sub-nationals and the organised private sector, are able to pay and something that is also sustainable.

“Recall that the president also mentioned last week that because of the fact that he is not in opposition to the issue of wage increase, he has even asked that instead of waiting for a whole five years before wages are reviewed, he has mooted the idea that we can actually look at these wages between two to three years so that if there are gaps, we don’t have to wait for five years for those gaps to be closed.

“So the discussion was not around the figure itself, it’s about the general parameters and the general principle of the wage increase itself, which the government fully supports, but federal government will have to do something that not only it can carry, the sub-nationals and the organised private sector will also be able to go along with.

“Recall that I’ve said it here that the issue of national minimum wage is not just that of the federal government; it is for the federal government, for the sub-nationals and for the organised private sector. Therefore, every decision to be taken by the president will have to also take note of the sensibilities of the other parts that I talked about.

“So, yes, there will be wage increase because there is already a proposal before the president, there is already a report before the president. The president is deepening his consultation and it is in that spirit that he met with the organised Labour last week.

“And also, as they requested, he will also meet with them on Thursday this week to finalise their thoughts and then he will make his informed position known to Nigerians by also sending this to the National Assembly,” he said.