The Federal Government has identified two key factors, namely lowering of production cost, and reduction in security threats as things it would pursue to enable it achieve its targeted 2.06 million per day crude oil production in 2025
Tanimu Yakubu, Director General of the Budget Office of the Federation, highlighted significant investment in Nigeria’s crude oil sector, underscoring the government’s determination to increase output levels.
He says: “Nigeria has sufficient investment to drill 3 million barrels per day, but it looks like some forces somewhere have decided that the country cannot get more than 900,000 barrels per day.”
“Mr President is disturbed that we have one of the highest costs of production in the upstream sector. He has assured us he will take every measure to ensure a substantial decrease in the cost of production, which again will bring us more foreign exchange,” he said.
Thanks to ongoing reforms, Yakubu expressed confidence in reaching a projected crude output of 2.6 million barrels per day in 2025.
“President Bola Ahmed Tinubu has determined that a combination of measures would be used to ensure this output level is achieved. We are close to 2 million barrels per day. There is also a transaction just approved involving the transfer of assets under a local empowerment arrangement by SPDC, which will give us an additional 130,000 barrels per day in the new year,” he stated.
The Director General of the Budget Office of the Federation, in an interview with ARISE NEWS on Thursday, addressed plans to rebase inflation and GDP by the National Bureau of Statistics, as well as the government’s optimistic economic projections.
He also addressed measures aimed at reducing inflation from its current rate of 34% to 15% by the end of 2024. He noted that one of the key factors driving price stability is the reduction in refined product imports due to the operationalisation of the Dangote Refinery and other small-scale local refineries.
“We used to spend as high as one-third of our foreign exchange earnings to import refined products. With Dangote Refinery coming on stream and small local refineries adding to the supply, we think this will substantially reduce the pressure on the naira,” he explained.
Additionally, Yakubu pointed to an influx of foreign portfolio investments as a sign of improving economic confidence, alongside efforts to export refined products and reduce the upstream production costs.
“Mr President is disturbed that we have one of the highest costs of production in the upstream sector. He has assured us he will take every measure to ensure a substantial decrease in the cost of production, which again will bring us more foreign exchange,” he said.
Yakubu concluded by reiterating that these initiatives form the basis for the government’s optimism about achieving price stability and boosting GDP growth to over 4% by 2025.
The DG also expressed confidence in achieving key economic targets, citing improvements in security and cooperation in the Niger Delta as significant contributors to the outlook.
Speaking on the matter, Yakubu said, “The cooperation that we are getting from the communities in the Niger Delta and enhanced level of security attainment, emboldens us that this figure is highly attainable.”
He further highlighted domestic economic objectives, particularly in curbing inflation.
“As for the domestic improvement in price stability is anchored in reducing the inflation rate from the current 34% to 15%, again is something that appears to be highly achievable,” he remarked
