The Chairman Senate Committee on Finance, Senator Sani Musa (APC, Niger) has said that there are strong indicators that the Nigerian economy is doing well.
Sani stated this Monday at a meeting between the Senate and House of Representatives Committee on Finance with the Ministers of Budget and National Planning, Atiku Bagudu, Petroleum Resources (State) Heineken Lokpobiri, Group Chief Executive Officer (GCEO, NNPCL) and representative of CBN Governor.
The lawmaker while speaking to journalists during the meeting noted that the Nigerian economy had witnessed some disruptions in the last few years, but noted that the revenue generating agencies and several key departments of the government were working hard to turn around the fortunes of the economy/
He said:
“We’ve heard from the Honourable Ministers, the Group Chief Executive Officer (GCEO) NNPCL, representative of the CBN that are here. We are all on the same path. It is about economic growth, how we can get our policy work.
“The National Assembly is very concerned because we are the representatives of the people and we are obliged to ask what is happening. This is the reason why such a meeting is very important. We have heard from them. At least, they have given us the preamble of the activities going on how our economy can get back to track.
“You are all aware of the obstructions our economy has had in the previous years, but it is not going to be easy that overnight, in 365 days or one year of the present administration things will change. It will be gradual and I believe that Nigeria will persevere.
“This is the only time we can all come together as one to give His Excellency, the President the needed support in order to get us out of the doldrum we have been.
“You can see the indicators are showing that the economy is doing well. The only thing is that things are difficult because it is not easy for inflation that has gone up to go down like that. It takes time.
“There are some indices, some indicators that have to work together; just like negative and positive cables working together you will achieve what you will achieve what you want, but when you say everything should go negative, it will not work”.
On his part the NNPC Group CEO, Mele Kyari who thanked the chairman and members of the Joint Committee while explaining that Nigeria was set to become net exporter of petroleum products.
He clarified that Nigeria’s three refineries will soon come on stream to refine petroleum products for domestic use.
He said “Let me just give confirmation that NNPC 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 painful. 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 have a line of sight to the 2 million barrels production and subsequent growth in production. I will give you some details during the executive session.
“Also, we are affirming that NNPCL will keep to its responsibility under the Petroleum Industry Act, which requires that we ensure national energy security when everyone else walks away. And we are confirming also that we have sufficient product supply in our country. There is no cause for any alarm today, and we are guaranteeing this supply.
“That’s why the huge challenges that it poses to our resources and, of course, the many multitude of issues that are raising those challenges, including cross-border smuggling and so on, but we are living up to this. The respective government institutions are taking their place, they are playing their part, and we are seeing a clear indication of success in this direction, while NNPCL continues to be the enormous predator that continues to supply petroleum products to the industry. But this is a requirement of the law.
“We will continue to do this, and I will give you further details during the executive session. Otherwise, Mr. Chairman, we believe that this company will continue to its responsibility. We are making progress.
“We are returning bundles to shareholders. We are restoring all the confidence that is required on this company to serve its shareholders. We are the owner of the Nigerian population on the basis of the provisions of the law.
“The company and I would like to thank the PIA and other NNPCL institutions. We would like to thank you for all the support that we get from the National Assembly to deliver on this responsibility, while being conscious of our overall responsibility to create the value that this country requires to make progress. Thank you very much, Mr. Chairman.
Answering questions on the Dangote refinery, Kyari clarified, “Yes, 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.
“And specific to NNPC refinery. As you recall, and 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.
“Let me explain this very clearly. We did have mechanical completion of the Port Harcourt refinery, which means that every technical work that is required to get the refinery on to work has been completed. This is what we announced December last year, if you recall.
“Once you are mechanically completed for an existing refinery, even for new ones, there are a number of technical steps that you have to take when you are introducing hydrocarbon into this plant. It is only then that you will see the real challenges of even a new refinery. And I can confirm to you today that we have gone through this.
“We are already introducing hydrocarbon under a hot situation, that’s what we call it. And I’m very sure that latest by early August, the Port Hacourt refinery will start producing product.
“And of course, the new one will get to December. And Warri will also be in production. I’m very optimistic.
“I don’t have any confirmation at this moment, so that nobody quotes me and says, oh, you keep lying. No, we’re not lying to you, Mr. President. This is a technical process.
“We do our best of intention. You can put debts on a refinery start-up, but it is when you get to start-up that you see the real challenges, even for a new refinery. As you can see, even a new, Port Hacourt refinery, it really has to take steps and processes to get it to full operation.
“This is very normal in a refinery operation. So we don’t put hard debts on it because there are things that you are never in control. Otherwise, I can confirm to you that we are taking every step to make sure that it works”.
The Representative of the CBN Governor, Mohammed Sani Abdullahi, Deputy Governor, Economic Policy expressed confidence that Nigeria will overcome the current economic challenges and the country will come out stronger.
According to him, some of the challenges like inflation has been with us for decades, adding that “some of these challenges are what other countries go through.”