Economic researchers at the Centre for the Study of Economies of Africa (CSEA), one of Nigeria-based economic research organization with primary focus on developments in Africa’s economies, have stressed the need for the government to intensify ongoing reforms in the oil and gas industry to boost foreign exchange earnings for the country.
The forecast by the firm’s experts is coming as the Federal Government continues to explore all revenue options in its drive to close yearly budgets’ deficits.
The analysts noted the recent improvements in the performance of the oil and gas industry, especially improved security in the upstream subsector could help the government in minimizing leakages and also improve the country’s oil production and exports.
The experts, in the firm’s just published ‘Nigeria Economic Update Issue 01’ recalled that data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC) showed that Nigeria’s crude oil production increased in December 2022 to 1.24 million barrels per day (mbpd), which is a 4.19 percent addition to the 1.18 mbpd recorded in the preceding month.
Noting that the nation’s crude oil production increased three times in a row after declining from February to September 2022, the researchers attributed the improved output largely to the government’s efforts to suppress oil theft, which have stopped some leaks since October 2022, and the beginning of the Kolmani Integrated Development Project, which has expanded production capacity.
To explore the promising production outlook of the industry, prospects, the CSEA analysts, urged the government to sustain the industry reforms for the benefit of the oil industry and the economy, as well as promoting additional investment in the sector and bolstering the security network for the industry to continue combating vandalism and bunkering.
Similarly, the experts pointed out that “since oil subsidies had not yet been eliminated, strategies must continue to be directed at enhancing Nigeria’s refining capability to prevent depletion in profits of crude oil exports in the medium term through importation of refined petroleum products.
“Thus, since oil continues to be the main source of income for the country, these measures, if properly created and executed, would considerably accelerate the nation’s economic growth”, the CSEA researchers added.
